Question

Stocks generally have produced positive inflation – adjusted rates of return over the long-term. True or False

Capitalization = Senior Debt + Mortgage Debt True or false

Answer 1

1. This given statement is a TRUE statement because the equity markets have always been the best performer after it has been adjusted for inflation.

If we calculate the return of equity market past several decades, we will get to the point that equity market has severely outperformed other asset class.

equity markets are direct reflector of the overall growth of the economy, so since in the past several decades the Global markets has grown tremendously so the equity markets has grown tremendously too and showered investors with tremendous returns even after being adjusted for inflation.

So this is a TRUE Statement.