Over the 1957-2005 Period, the Standard Deviation of Returns for Long

question 107

Multiple Choice

Over the 1957-2005 period, the standard deviation of returns for long bonds has averaged ___________ per year.

• A) 3.25%
• B) 8.65%
• C) 10.15%
• D) 20.35%
• E) 33.85%

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Definitions:

Perfectly Elastic

A situation where the quantity demanded or supplied changes infinitely in response to any change in price.

Marginal Expenditure Curve

A graphical representation that shows the change in total expenditure incurred by purchasing one additional unit of a good or service.

Economic Rent

Amount that firms are willing to pay for an input less the minimum amount necessary to obtain it.

Factor Of Production

Resources used in the creation of goods and services, typically categorized into land, labor, capital, and sometimes entrepreneurship.