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

question 69

Multiple Choice

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

• A) Long-term government bonds had more volatile annual returns than did the long-term corporate bonds.
• B) The standard deviation of the annual rate of inflation was less than 3 percent.
• C) U.S Treasury bills have a zero variance in returns because they are risk-free.
• D) The risk premium on small-company stocks was less than 10 percent.
• E) The risk premium on all U.S. government securities is 0 percent.

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