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Which one of the following statements is true concerning market performance from 1926 to 2000?

U.S. Treasury bills have paid returns in excess of 10% in some years.

U.S. Treasury bills do not pay sufficient return to cover inflation.

Over the short-term, small-company stocks are less volatile than large-company stocks.

U.S. Treasury bills tend to pay a higher rate of return than long-term government bonds do.

Over the long-term, large-company stocks outperform small-company stocks.

Financial Management, Finance

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