Which of the Following Statements Is the Most Accurate Concerning

question 60

Multiple Choice

Which of the following statements is the most accurate concerning security returns over the eight decades since the 1920s?

• A)Returns on large common stocks were very stable.
• B)Returns on long-term corporate bonds were very stable.
• C)Returns on long-term government bonds were very stable.
• D)Returns on treasury bills were very consistent from period to perioD.
• E)All securities exhibited very unstable returns over the eight decades in question.

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Definitions:

Service Company

A business that earns revenue by providing intangible products or services, as opposed to selling physical goods.

Indirect Labor

The labor costs of janitors, supervisors, materials handlers, and other factory workers that cannot be conveniently traced to particular products.

Direct Labor-Hours

The total time workers spend directly manufacturing a product.

Spending Variance

The difference between the actual spending and the budgeted or planned spending in a given period.