Given That Short-Term Interest Rates Typically Fluctuate Less Than Long-Term

question 102

Multiple Choice

Given that short-term interest rates typically fluctuate less than long-term rates,interest rate risk is least for

• A) treasury bills.
• B) common stock.
• C) long-term government bonds.
• D) medium-term corporate bonds.

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Definitions:

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Comparative advantage is an economic principle that describes how a country can gain by producing goods and services for which it has a lower opportunity cost than other countries.

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