Consider the Risk-Return Relationship in T-Bills During Each Decade Since

question 27

Multiple Choice

Consider the risk-return relationship in T-bills during each decade since 1950. Given this data, which of the following statements is correct? $$\begin{array} { | c | c | } \hline \text { Decade } & \text { CoV } \\\hline 1950 \mathrm {~s} & 0.40 \\\hline 1960 \mathrm {~s} & 0.33 \\\hline 1970 \mathrm {~s} & 0.29 \\\hline 1980 \mathrm {~s} & 0.29 \\\hline 1990 \mathrm {~s} & 0.24 \\\hline 2000 \mathrm {~s} & 0.55 \\\hline\end{array}$$

• A)The best risk-return relationship was during the 1950s.
• B)The best risk-return relationship was during the 1990s.
• C)Since T-bills is backed by the full faith of the U.S. government, computing the risk-return relationship for them is invalid.
• D)None of these statements are correct.

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