The Fact That Historical Returns on Treasury Bills Are Less

question 109

Multiple Choice

The fact that historical returns on Treasury bills are less volatile than common stock returns indicates that:

• A)the variance of treasury bill returns is zero.
• B)the standard deviation of treasury bill returns is negative.
• C)the real return on treasury bills has been zero.
• D)common stocks should offer a higher return than treasury bills.

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Definitions:

Interpretation

The process of explaining the meaning of something; in psychology, often referring to the analysis of dreams, actions, or thoughts.

Dream

A succession of images, ideas, emotions, and sensations that usually occur involuntarily in the mind during certain stages of sleep.

Transference

The process by which emotions and desires originally associated with one person are unconsciously shifted to another person, especially in psychoanalysis.

Counterconditioning

A therapy method that involves teaching the patient to replace a negative response to a stimulus with a positive one.