In Comparing the Deviations of Returns, Which One of the Following

question 45

Multiple Choice

In comparing the deviations of returns, which one of the following assets has historically had the largest standard deviation of annual returns?

• A) large company stocks
• B) long-term corporate bonds
• C) long-term government bonds
• D) U.S. Treasury bills

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Definitions:

Control

in the context of management and business, refers to the process of regulating activities and verifying that everything is proceeding according to plan, to ensure the achievement of goals.

Disposable Income

Earnings left after subtracting taxes and social security contributions, which can be either saved or spent according to one's preferences.

Savings

The portion of income that is not spent on consumption or taxes, and is therefore available for investing or setting aside for future use.

Disposable Income

The net income available to an individual or household after all taxes have been deducted, available for spending or saving.