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Data going back the last 70 years indicate that the average annual return on stocks (whether large or small company stocks) is over 10%, while

Data going back the last 70 years indicate that the average annual return on stocks (whether large or small company stocks) is over 10%, while that on T-bills is about 3.7% and on long-term government bonds, 5.9%.

  • Why do you think anybody invests in bonds when stocks appear to perform so much better?
  • What would you prefer to invest in - stocks or bonds or both?

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