Which One of the Following Was the Least Volatile Over

question 11

Multiple Choice

Which one of the following was the least volatile over the period of 1926-2010?

• A)large-company stocks
• B)inflation
• C)long-term corporate bonds
• D)U.S. Treasury bills
• E)intermediate-term government bonds

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Definitions:

Sunk Cost

A past expenditure that cannot be recovered and should not be considered when making future investment decisions.

Nonrefundable

A term used to describe payments or fees that cannot be returned to the payer under most circumstances.

Nontransferable

A characteristic of certain rights or privileges that cannot be legally transferred from one individual or entity to another.

Economic Profit

Economic profit is a measure of performance that includes opportunity costs in addition to traditional accounting profits.