Which of the Following Represents the Correct Ordering of Returns

question 107

Multiple Choice

Which of the following represents the correct ordering of returns over the period 1926 to 2011 (from lowest to highest return) ?

• A)Treasury bills,long-term corporate bonds,common stocks,small firm common stocks
• B)small firm common stocks,common stocks,long-term corporate bonds,Treasury bills
• C)Treasury bills,common stocks,long-term corporate bonds,small firm common stocks
• D)long-term corporate bonds,Treasury bills,common stocks,small firm common stocks

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Definitions:

Wage Differentials

The variations in wage rates due to factors such as occupation, experience, education, industry, location, and economic conditions.

Sociological Immobilities

Barriers within a society that prevent or impede individuals’ ability to move up the social or economic ladder.

Compensating Differences

Wage differentials that arise to compensate workers for the desirability or undesirability of a job, based on factors like risk or location.

Nonmonetary Characteristics

Attributes or factors that influence decisions and behavior that are not related to financial aspects, such as personal preferences or cultural values.