Which one of the following statements is true concerning market performance from 1926 - 2015?

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

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

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

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

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

2. George purchased a stock one year ago at a price of $35.09. Over the past year he has received a total of $2.13 in dividends. Today he sold the stock for $33.85 What percentage total return did Marti earn on this investment?

1) 1.89%

2) 2.23%

3) 2.54%

4) 1.90%

5) – 2.72%