Which One of the Following Is a Correct Ranking of Securities

question 47

Multiple Choice

Which one of the following is a correct ranking of securities based on their volatility over the period of 1926 to 2009? Rank from highest to lowest.

• A)Small company stocks, long-term corporate bonds, large company stocks
• B)Large company stocks, U.S.Treasury bills, long-term government bonds
• C)Small company stocks, long-term government bonds, long-term corporate bonds
• D)Long-term corporate bonds, large company stocks, U.S.Treasury bills
• E)Small company stocks, large company stocks, long-term government bonds

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Definitions:

Goes Up 20%

Represents an increase by a fifth from a previous value or level, often used in financial contexts to describe growth.

Phillips Gasoline

Phillips Gasoline refers to gasoline produced and marketed by Phillips 66, an American energy company, recognized for its quality and performance fuel products.

Calculate Elasticity

The process of determining the measure of responsiveness of the quantity demanded or quantity supplied of a good to a change in one of its determinants, such as price or income.

Unit Elastic

A situation in economics where a change in the price of a good leads to a proportional change in quantity demanded or supplied.