Which One of the Following Statements Is Correct Based on the Historical

question 29

Multiple Choice

Which one of the following statements is correct based on the historical record for the period 1926-2016?

• A) The standard deviation of returns for small-company stocks was double that of large-company stocks.
• B) U.S. Treasury bills had a zero standard deviation of returns because they are considered to be risk-free.
• C) Long-term government bonds had a lower return but a higher standard deviation on average than did long-term corporate bonds.
• D) Inflation was less volatile than the returns on U.S. Treasury bills.
• E) Long-term government bonds were less volatile than intermediate-term government bonds.

Analyze the impact of different allocation methods on departmental performance evaluations.

Calculate variable and fixed service department costs based on operational data.

Determine unallocated service department costs at year-end.

Compute the amount of service department cost to be charged to specific operating divisions for performance evaluation purposes.

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Definitions:

Blue-money Income

Informal term possibly referring to income earned in a foreign or stronger currency, or income derived from questionable or illegal activities.

Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and a product for which each unit is identical to every other unit.

Coconuts

Tropical fruits or nuts known for their water, milk, oil, and meat, and often used as examples in economic models.

Fish

Aquatic vertebrates that are typically covered with scales and equipped with fins for swimming.