Based on historical returns-types of securities

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1. Suppose your grandmother invested some money in 1925. Based on historical returns from 1925 to 2015, what of the following types of securities would have given her the SECOND highest return?

a) High quality long-term corporate bonds

b) The common stock of small capitalization firms listed on NYSE

c) The common stock of the 500 largest firms in the US

d) US Treasury bills

e) Long-term government bonds

2. Suppose your grandmother invested some money in 1925. Based on historical returns from 1925 to 2015, what of the following types of securities would have given her the SECOND highest return?

a) High quality long-term corporate bonds

b) The common stock of small capitalization firms listed on NYSE

c) The common stock of the 500 largest firms in the US

d) US Treasury bills

e) Long-term government bonds

Reference no: EM131932814

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