Which of the Following Represents the Correct Ordering of Returns

question 23

Multiple Choice

Which of the following represents the correct ordering of returns over the period 1926 to 2014 (from lowest to highest return) ?

• A) Treasury bills, long-term government bonds, long-term corporate bonds, common stocks
• B) common stocks, long-term government bonds, long-term corporate bonds, Treasury bills
• C) Treasury bills, common stocks, long-term corporate bonds, long-term government bonds
• D) long-term corporate bonds, Treasury bills, long-term government bonds, common stocks

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Definitions:

Emotional State

Encompasses a person's current feelings and mood, which can affect perception, decision-making, and behavior.

Spillover Effect

The phenomenon where the effects of one event extend to affect other areas or domains, often in an unrelated context.

Emotional Volatility

A state characterized by rapid, frequent, and intense fluctuations in emotional states, affecting a person's behavior and relationships.

James-Lange Theory

A theory of emotion proposing that physical arousal precedes and causes the emotional experience.