On Average,for the Period 1926 to 2015

question 52

Multiple Choice

On average,for the period 1926 to 2015

• A)U.S.Treasury bills had a negative risk premium.
• B)small-company stocks underperformed large-company stocks.
• C)large-company stocks had a higher risk premium than long-term corporate bonds.
• D)intermediate-term government bonds produced higher returns than long-term government bonds.
• E)large-company stocks had a higher risk premium than small-company stocks.

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Definitions:

Planned Activity Level

The expected volume of production or sales used in budgeting and decision-making processes.

Machine Hours

A measure of the amount of time a machine is operated, used for allocating manufacturing costs.

Flexible Budget Total

A financial plan that adjusts or varies with changes in the volume of activity or business.

Direct Labor Hours

The total hours of labor directly involved in producing goods or services, often used as a basis for allocating overhead costs.