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Based on the history of US financial markets, which of the following statements are true? if I invest in a portfolio of small-company (in terms
Based on the history of US financial markets, which of the following statements are true?
- if I invest in a portfolio of small-company (in terms of market-value) stocks and another portfolio of large-company stocks, then the small-company portfolio would give me a higher return next year than the large-company portfolio,
- if I invest in a portfolio of large-company stocks and another portfolio of long-term corporate bonds, then the large-company portfolio would give me a higher return next year than the corporate-bond portfolio,
- if I invest in a portfolio of long-term corporate bonds and another portfolio of treasury-bills, then the corporate-bond portfolio would give me a higher return next year than the treasury-bill portfolio.
Which of the options are correct and why ?
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