The Fact That Historical Returns on Treasury Bonds Are Less

question 11

Multiple Choice

The fact that historical returns on Treasury bonds are less volatile than common stock returns indicates that:

• A) the variance of Treasury bond returns is zero.
• B) the standard deviation of Treasury bond returns is negative.
• C) the real return on Treasury bonds has been negative.
• D) common stocks should offer a higher return than Treasury bonds.

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Definitions:

Christianity

A monotheistic religion based on the life and teachings of Jesus Christ, emphasizing salvation through faith and the concept of the Trinity.

Liberty

A state of being free within society from oppressive restrictions imposed by authority on one's way of life, behavior, or political views.

Cult Of Domesticity

A prevailing value system among the upper and middle classes during the 19th century in the United States and Britain that emphasized the role of women as custodians of morality and domesticity.

Market Revolution

The major transformation in the 19th century U.S. economy characterized by rapid industrialization, expansion of markets, and significant social changes.