In Comparing the Deviations of Returns, Which One of the Following

question 119

Multiple Choice

In comparing the deviations of returns, which one of the following assets has historically had the largest standard deviation of annual returns?

• A)U.S.Treasury bills
• B)long-term corporate bonds
• C)long-term government bonds
• D)large company stocks

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Definitions:

Variable Cost

A cost that changes in proportion to the level of output or activity.

Fixed Cost

Fixed charges that stay the same no matter the production or sales volume, like rental costs, salary payments, and insurance rates.

Composition

The way in which different components or elements are organized or arranged.

Fixed Cost

Expenses that do not change in proportion to the level of goods or services produced by a business.