Question: Exhibit 15 1 shows how cumulative returns on investments in the
Exhibit 15.1 shows how (cumulative) returns on investments in the equity market index have consistently exceeded returns on investments in government bonds over the past 200 years. This being the case, would you recommend that investors consider not investing in government bonds at all? What would a chart of annual returns on investment in equity and bonds look like—and does its shape influence your recommendation?
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