Which One of the Following Statements Is Correct

question 23

Multiple Choice

Which one of the following statements is correct?

• A)The standard deviation of the returns on Treasury bills is zero.
• B)Large-company stocks are historically riskier than small-company stocks.
• C)The variance is a means of measuring the volatility of returns on an investment.
• D)A risky asset will always have a higher annual rate of return than a riskless asset.
• E)There is an indirect relationship between risk and return.

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Definitions:

Transferee

A person or entity that receives property, rights, or a legal interest from another (the transferor) through a legal transfer process.

Transferor

An individual or entity that transfers property, rights, or interest to another.

Instrument

A formal document, especially one used in legal or financial contexts, that records a contractual agreement, obligation, or right.

Enforce

To compel obedience or compliance, often through legal or authoritative action.