Which One of the Following Statements Is Correct

question 69

Multiple Choice

Which one of the following statements is correct?

• A)The standard deviation of the returns on Treasury bills is zero.
• B)Large-company stocks are historically riskier than small-company stocks.
• C)The standard deviation is a means of measuring the volatility of returns on an investment.
• D)A risky asset will always have a higher annual rate of return than a riskless asset.
• E)There is an indirect relationship between risk and return.

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Definitions:

Auto Sales

The activities associated with selling automobiles, including both new and used vehicles.

Producer Surplus

The difference between what producers are willing to sell a good for and the market price they actually receive.

Negotiated Price

The final price agreed upon by the buyer and seller after discussions or bargaining, reflecting both parties' interests.

Dominant Strategy

is a strategy that yields the best outcome for a player, regardless of the opponent's actions, in game theory and economic analysis.