Which One of the Following Had the Smallest Standard Deviation

question 71

Multiple Choice

Which one of the following had the smallest standard deviation of returns for the period 1926-2009?

• A) large-company stocks
• B) small-company stocks
• C) long-term government bonds
• D) intermediate-term government bonds
• E) long-term corporate bonds

---

Definitions:

Exit Value

The estimated amount that an asset or investment could be sold for at the end of its useful life.

Economic Resource

Assets or inputs that have the potential to contribute to the production of goods and services, providing economic benefit to businesses or individuals.

Asset

Resources owned or controlled by a business, projected to bring future economic benefits.

Measurement Alternative

An accounting option that allows entities to measure certain investments at cost, minus impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer.