Consider the Risk-Return Relationship in T-Bills During Each Decade Since

question 3

Multiple Choice

Consider the risk-return relationship in T-bills during each decade since 1950. Given this data, which of the following statements is correct?

• A) The best risk-return relationship was during the 1950s.
• B) The best risk-return relationship was during the 1990s.
• C) Since T-bills are backed by the full faith of the U.S. government, computing the risk-return relationship for them is invalid.
• D) None of these statements are correct.

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