Which of the Following Security Portfolios Should Offer the Highest

question 54

Multiple Choice

Which of the following security portfolios should offer the highest maturity premium?

• A)common stocks, because they never mature
• B)long-term treasury bonds, because of potential fluctuations in interest rates
• C)treasury bills, because of fluctuations in inflation rates
• D)The Dow, because it is the oldest and most stable index

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