Question: Please give a thorough explanation, thank you! Explain why each of the following statements is misleading: The return of a long-term US government bond is

Please give a thorough explanation, thank you!

Explain why each of the following statements is misleading:

  1. The return of a long-term US government bond is absolutely safe.
  2. All investors should prefer bonds to stocks because bond prices are less volatile than stocks.
  3. The best forecast of future rates of return for any asset is to look at its long-term historical average return.

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