Which One of the Following Statements Is Correct Based on the Historical

question 93

Multiple Choice

Which one of the following statements is correct based on the historical record for the period 1926-2007?

• A)The standard deviation of returns for small-company stocks was double that of large-company stocks.
• B)U.S.Treasury bills had a zero standard deviation of returns because they are considered to be risk-free.
• C)Long-term government bonds had a lower return but a higher standard deviation on average than did long-term corporate bonds.
• D)Inflation was less volatile than the returns on U.S.Treasury bills.
• E)Long-term government bonds underperformed intermediate-term government bonds.

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Definitions:

Inspirational Appeal

An influence tactic that seeks to motivate and engage others by appealing to their emotions or ideals.

Enthusiasm

A strong excitement or eagerness about doing something or about something that interests one.

Commitment

A psychological state or an enduring pledge or promise that influences an individual's or group's persistence and dedication to a goal, task, or relationship.

Political Communications

Candidate-to-voter communications; dynamic, interactive campaign-based process among politicians, the news media, and the public.