Table indicates that the average annual rate of return on common stocks over many years has exceeded
Question:
Security .............................. Return*
Common stocks .................... 11.4%
Long-term corporate bonds ....... 5.7
Long-term government bonds .... 5.2
Short-term government bills ...... 4.0
Consumer price index .............. 3.1
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...
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Common stocks are more risky than US government bonds ...View the full answer
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