Capital Market History Shows Us That the Average Return Relationship

question 34

Multiple Choice

Capital market history shows us that the average return relationship between securities where:

• A) lowest return is inflation, then corporate bonds, Treasuries, small company stocks, to highest return all common stocks.
• B) lowest return is Treasury bills, inflation, small company stocks, highest return all common stocks.
• C) lowest return is Treasury bills, corporate bonds, government bonds, all common stocks, highest small company stocks.
• D) lowest return is Treasury bills, government bonds, corporate bonds, all common stocks, highest small company stocks.

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Definitions:

Wilcoxon Rank Sum Test

A non-parametric statistical hypothesis test used to compare two independent samples, based on the ranks of their combined observations.

Standard Deviation

A tool to evaluate the distribution's breadth or heterogeneity of a set of data.

Wilcoxon Rank Sum Test

A non-parametric statistical test used to compare two independent samples to determine if they come from the same distribution.

Null Hypothesis

A default hypothesis that there is no significant difference or effect, often represented as H0 in statistical tests, to be tested against an alternative hypothesis.