Use the Table for the Question(s)below

question 91

Multiple Choice

Use the table for the question(s) below.
Consider the following average annual returns:

-Which of the following statements is TRUE?

• A)On average,smaller stocks have lower volatility than Treasury bills.
• B)Portfolios of smaller stocks are typically less volatile than individual small stocks.
• C)On average,smaller stocks have lower returns than larger stocks.
• D)On average,Treasury bills have higher returns than world stocks.

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Definitions:

Retrospectively

A method of application where the rules or standards are applied to actions, transactions, or situations that have occurred in the past.

Retrospective Restatement

The process of revising previously issued financial statements to correct errors or to reflect changes in accounting policies, as if the new information had been known at the original reporting date.

Material Error

A significant mistake in financial reporting that could influence the economic decisions of users of the financial statements.