Which of the following is true? • Historically, bonds have generally earned a higher
rate of return than equity investments.
• Indexed equity mutual funds allow the ordinary
investor to earn the attractive long-term returns
yielded by stocks.
• An ordinary person cannot expect to earn an
attractive return from investments in stocks unless
they are willing to engage in intense stock market
research.
Equity mutual funds managed by professionals
have generally outperformed indexed equity
mutual funds.