Capital Market History Shows Us That the Average Return Relationship

question 36

Multiple Choice

Capital market history shows us that the average return relationship from lowest to highest between securities is:

• A)inflation, corporate bonds, Treasuries, small company shares, large company shares.
• B)Treasury bills, small company shares, large company shares.
• C)Treasury bills, corporate bonds, government bonds, large common shares, small company
• Shares.
• D)Treasury bills, government bonds, corporate bonds, large common shares, small company
• Shares.
• E)There is no ordering.

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Definitions:

Table Value

Corresponds to a specific number found in a statistical table that is used to determine the critical value for hypothesis testing, often associated with a particular significance level.

Coefficients Of Correlation

Numerical measures that quantify the strength and direction of the linear relationship between two variables.

Linear Relationship

A relationship between two variables where a change in one variable is associated with a proportionate change in the other variable.

Variables

Elements, characteristics, or factors that can change or vary and are studied to determine their effects in research.