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:

Favorable Outcome

A result or end that is considered to be beneficial, positive, or desirable, often used in the context of therapy or intervention studies.

Archetypes

Universal, inherited models of people, behaviors, or personalities that play a role in influencing human behavior, as proposed by Carl Jung.

Consciousness

The state of being aware of and able to think about one's own existence, sensations, thoughts, surroundings, and experiences.

Influenced

The capacity of a person, object, or idea to have an effect on others or the environment, often without direct or physical presence.