contestada

which one of the following categories of securities had the highest average annual return for the period 1926–2019?a. U.S. Treasury bills
b. Large-company stocks
c. Small-company stocks
d. Long-term corporate bonds
e. Long-term government bonds

Respuesta :

The option that had the highest average annual return for the period 1926–2019 is Small-company stocks. Thus, option C is correct.

What are Small-company stocks?

Small-cap stocks are shares of firms having market capitalization of $300 million to $2 billion. Small-cap firms have the potential for rapid development, making them tempting investments, even if their stocks may be volatile and represent more risks to investors.

The AR (Average Return) on US Treasury notes was 3.5%.

  • Large-company stocks accounted for 12.1%.
  • Small-company stocks accounted for 16.9%.
  • Long-term corporate bonds had a yield of 6.3%.
  • The long-term government bond yielded 5.9%.

Small-company stocks produced the highest average yearly return between 1926 and 2019. As a result, option C is correct.

Learn more about Small-company stocks here:

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