Capital Market History Shows Us That a Correct Ordering of the Average

question 28

Multiple Choice

Capital market history shows us that a correct ordering of the average arithmetic mean return for asset classes, from lowest to highest, is:

• A) Corporate bonds, Treasury bills, small-company stocks, and large-company stocks.
• B) U.S. Treasury bills, small-company stocks, large-company stocks, and government bonds.
• C) Government bonds, Treasury bills, large-company stocks, and small-company stocks.
• D) Treasury bills, government bonds, corporate bonds, and large-company stocks.
• E) Treasury bills, long-term government bonds, intermediate-term government bonds, small-company stock.

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Definitions:

Daily Production

Refers to the amount of goods or services produced by a company, factory, or individual within a 24-hour period.

Population

The total set of observations or data points that can be made in a statistical study.

Matched Samples

Samples in which each data value of one sample is matched with a corresponding data value of the other sample.

Population Average

The mean or average of a set of data collected from the entire population under study.