Rank the following from highest average historical return to lowest average historical return from 1926 to 2017.
I. Small stocks
II. Long-term bonds
III. Large stocks
IV. T-bills

A) I, II, III, IV
B) III, IV, II, I
C) I, III, II, IV
D) III, I, II, IV

Historical Return

Refers to the past performance of an investment or an index, usually expressed as a percentage change from the initial investment.

Small Stocks

These are shares of companies with a relatively small market capitalization, often considered to be more volatile but potentially offering higher returns compared to larger companies.

Long-Term Bonds

Bonds with a longer maturity period, typically more than 10 years, offering potentially higher yields but increased interest rate risk.