Which of the Following Statements Is True

question 28

Multiple Choice

Which of the following statements is true?

• A) On average, smaller stocks have lower volatility than Treasury bills.
• B) Portfolios of smaller stocks are typically less volatile than individual small stocks.
• C) On average, smaller stocks have lower returns than larger stocks.
• D) On average, Treasury bills have higher returns than world stocks.
• E) Portfolios of large stocks are typically more volatile than individual small stocks.