If You Were to Use the Standard Deviation as a Measure

question 45

Multiple Choice

If you were to use the standard deviation as a measure of investment risk,which of the following has historically been the least risky investment?

• A) common stock of large firms
• B) U.S. Treasury bills
• C) common stock of small firms
• D) long-term government bonds

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Definitions:

Quantity Supplied

The total amount of a good or service that sellers are willing and able to sell at a given price level, at a specific time.

Bushels Of Wheat

A measure of volume used chiefly in the U.S. to quantify the production or trading of wheat and other grains.

Equilibrium Price

The market price at which the quantity of goods supplied equals the quantity demanded, leading to market stability.

Quantity Supplied

The supply of goods or services that vendors are prepared and capable of offering at an established price over a specified duration.