Which portfolio had the highest average annual return in real terms between 1900 and 2020?Group of answer choicesPortfolio of U.S. government bondsPortfolio of U.S. common stocksPortfolio of Treasury bills
Question
Which portfolio had the highest average annual return in real terms between 1900 and 2020?Group of answer choicesPortfolio of U.S. government bondsPortfolio of U.S. common stocksPortfolio of Treasury bills
Solution
To answer this question, we would need to have specific data on the average annual returns of each of these portfolios between 1900 and 2020. However, historically, it is generally accepted that a portfolio of U.S. common stocks tends to yield a higher average annual return in real terms compared to portfolios of U.S. government bonds or Treasury bills. This is due to the higher risk associated with stocks, which can lead to higher rewards. However, please note that this is a general trend and may not hold true for all periods. It's always important to do your own research or consult with a financial advisor.
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