Which One of the Following Is a Correct Ranking of Securities

question 52

Multiple Choice

Which one of the following is a correct ranking of securities based on their volatility over the period of 1926 to 2008? Rank from highest to lowest.

• A)large company stocks, U.S.Treasury bills, 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:

Patent

A government-granted exclusive right for an invention, giving the patent owner the right to exclude others from making, using, or selling the invention for a certain period.

Net Income

Net income is the total earnings of a company after subtracting all expenses, taxes, and losses, indicating the company's profitability during a specific time period.

Fair Value

The amount it would take to sell an asset or transfer a liability in a regulated deal between parties in the market at the time of evaluation.

Operating Income

Earnings from a company's core business operations, excluding deductions of interest and taxes.