Over the Past 90 Years, Which of the Following Financial

question 23

Multiple Choice

Over the past 90 years, which of the following financial assets showed the greatest amount of price volatility, as measured by standard deviation?

• A) Small-cap stocks
• B) Large-cap stocks
• C) Treasury bonds
• D) Treasury bills

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Definitions:

Transform Faulting

A type of strike-slip fault where two tectonic plates slide past each other horizontally, typically found at mid-ocean ridges.

Mid-Ocean Ridge

An underwater mountain range, formed by plate tectonics, where new oceanic crust is created through volcanic activity.

Seafloor Spreading

A geologic process where new oceanic crust is formed at mid-ocean ridges and slowly moves away from the ridge, contributing to continental drift.

Subduction

The process by which one tectonic plate moves under another, sinking into the Earth's mantle.