The Standard Deviation of Returns Of

question 34

Multiple Choice

The standard deviation of returns of:
I.small capitalization stocks is higher than that of large capitalization stocks.
II.large capitalization stocks is lower than that of corporate bonds.
III.corporate bonds is higher than that of Treasury bills.
Which statement is true?

• A)I and III
• B)I,II,and III
• C)I and II
• D)I only

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Definitions:

Tariffs

Taxes imposed on imported goods, often used to protect domestic industries from foreign competition.

Fair Trade

A social movement and market-based approach that aims to help producers in developing countries achieve better trading conditions and promote sustainability.

Free Trade

International trading practices characterized by minimal governmental intervention regarding tariffs, allowing for the unobstructed exchange of goods and services.

General Agreement on Trade and Tariffs

An international trade agreement signed in 1947, aimed at reducing tariffs and other trade barriers to promote global economic exchange.