Given the historical information in the chapter, which of the following investment classes had the highest average return?
A) Intermediate-Term Government Bonds
B) Long-Term Government Bonds
C) Large U.S. Stocks
D) Small U.S. Stocks

Question

Quizplus · Accepted Answer

Historically, small U.S. stocks have had the highest average return compared to intermediate-term government bonds, long-term government bonds, and large U.S. stocks. This is due to their higher risk compared to bonds and larger companies, which often leads to higher potential rewards over the long term.

Given the Historical Information in the Chapter, Which of the Following