Money Smarts Quiz Answer (3b)
b. corporate bonds
The correct answer is: a. stocks.
If you had invested $1 in the stocks of large companies in 1925 and you reinvested all dividends, your dollar would be worth $2,350 at the end of 1998. If the same dollar had been invested in corporate bonds, it would be worth $61, and if it had been invested in U.S. Treasury bills, it would be worth $15. (This information came from Ibbotson Associates, Inc.)
Question 3, Answer b