Small-company stocks U.S (A) has the widest frequency distributin of returns for the period 1926-2014.
Let's discuss every option we have.
Small-company stocks U.S. are shares released by companies with small capitals. These kind of companies have their stocks distributed more than those companies with large capitals. A company could be called as a small-cap if it has a relatively small market capitalization. The market value of its outstanding shares is what is referred to as a market cap. Companies categorized as small-cap are more than large companies, hence their stocks have a wide distribution frequency.
Treasury Bills or T-Bills refers to government debt obliation backed by the Treasury Department with a short-term maturity. T-bills are mostly sold in denomination of $1,000. T-bills are regarded as low-risk and secure investment. T-bills are the shortest kind of government debt product. T-bills don't provide periodic interest payments, they are sold at a discounted price to the face valaue of the bond . Since it has short-term maturity, T-bills has to be sold at the right time to avoid any potential loss.
Long-term government bonds or Treasury Bonds are debt securities issued by a government to support government spending and obligations. T-bonds are considered as low-risk investments with the government backing. T-Bonds are playing roles as part of The Fed monetary policy tools to control the amount of money supply in the economy. T-bonds market is very liquid, its holders are able to resell them on the secondary bond market easily.
Inflatiton represents a rise in prices or the decline of the market purchasing power over time. Inflation happens when the average price increases because of decrease in the market purchasing power. Inflation could happen in 2 kinds of scenarios; Cost-push inflation and Demand-pull inflation.
Large-company stock are shares released by large-cap companies. These companies have large market capitalization and their outstanding shares are most likely higher than their market cap. Large companies are more centralized and owned by several kinds of people groups, hence their stocks have a more centrealized distribution frequency.
For better comparison, please refer to the picture attached below.
Small-company stocks has wider frequency distribution than other option. This illustrate the explanation above.
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