Which One of the Following Had the Lowest Standard Deviation

question 1

Multiple Choice

Which one of the following had the lowest standard deviation of returns for the period of 1926-2011?

• A)U.S. Treasury bill
• B)Inflation
• C)Long-term corporate bonds
• D)Large-company stocks
• E)Long-term government bonds

Apply laws of expected value and variance to find specific values for given distributions.

Understand and apply the concept of a Poisson distribution, including its mean and variance properties.

Understand and calculate the expected value of transformed random variables.

Calculate the probability of specific events given a probability distribution.

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Definitions:

Antitrust Laws

Legislation designed to promote competition and prevent monopolies by regulating the conduct and organization of business corporations, especially to promote fair competition for the benefit of consumers.

Competition

The rivalry among businesses to attract customers, improve offerings, and achieve market dominance.

Unfriendly Mergers

Mergers or acquisitions that occur without the consent of the target company's management or board, often involving hostile takeover tactics.

Net Cash Flows

The difference between a company's total cash inflows and outflows over a specific period, indicating its overall liquidity movement.