A Study Examining the Performance of Numerous Assets from the United

question 16

Multiple Choice

A study examining the performance of numerous assets from the United States and around the world confirms that

• A) riskier assets with higher standard deviations experienced lower returns.
• B) riskier assets with lower standard deviations experienced higher returns.
• C) beta did a better job of explaining the returns than standard deviation.
• D) U.S. equities are highly correlated with world government bonds and with the commodities index.
• E) most assets (including common stocks) have positive correlations with inflation.