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If this year is consistent with historical trends you would expect the return fo

ID: 2735341 • Letter: I

Question

If this year is consistent with historical trends you would expect the return for small capitalization stocks to be

Below common stocks and above long-term government bonds.

Below common stocks and below long-term government bonds.

Above last year's return on the same stocks.

Above common stock, long-term government, and corporate bonds.

The least variable among long-term bonds and common stocks.

Below common stocks and above long-term government bonds.

Below common stocks and below long-term government bonds.

Above last year's return on the same stocks.

Above common stock, long-term government, and corporate bonds.

The least variable among long-term bonds and common stocks.

Explanation / Answer

If this year is consistent with the historical trends we would expect the returns for small capitalization to be above common stock , long term government and corporate bonds.