Which One of the Following Is a Correct Ranking of Securities

question 25

Multiple Choice

Which one of the following is a correct ranking of securities based on their volatility over the period of 1926 to 2017? Rank from highest to lowest volatility.

• A)Large-company stocks,intermediate-term government bonds,long-term government bonds
• B)Small-company stocks,long-term corporate bonds,large-company stocks
• C)Long-term government bonds,long-term corporate bonds,small-company stocks
• D)Small-company stocks,large-company stocks,long-term corporate bonds
• E)Long-term corporate bonds,large-company stocks,U.S.Treasury bills

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Definitions:

Discriminatory Price

A pricing strategy in which different customers are charged different prices for the same product or service without a justified basis.

Robinson-Patman Act

A United States federal law aimed at preventing anti-competitive practices by producers, specifically price discrimination.

Exclusive Dealing Agreement

A contract between a seller and buyer in which the buyer agrees to purchase all of a particular product from the seller, excluding competitors.

Significant Anticompetitive Effect

Actions or agreements that significantly reduce competition in a market, in violation of antitrust laws.