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

question 1

Multiple Choice

Which one of the following statements is correct based on the historical record for the period 1926-2010?

• 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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