Which of the Following Classifications of Securities Had the Smallest

question 19

Multiple Choice

Which of the following classifications of securities had the smallest range of annual returns over the period 1950-1999?

• A)Large-company stocks
• B)Long-term government bonds
• C)Small-company stocks
• D)3-month U.S.Treasury bills

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Definitions:

Put

It refers to an options contract giving the holder the right but not the obligation to sell a specified amount of an underlying security at a predetermined price within a specified time frame.

Underlying Asset

The financial asset that determines the value of a derivative instrument or structured product.

Treasury Bills

Short-term debt securities issued by the government with a maturity of less than one year, used to finance government spending.

Put Option

A financial contract giving the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a predetermined price within a specific time frame.