A Study Examining the Performance of Numerous Assets from the United

question 27

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) standard deviation did a better job of explaining the returns than beta.
• D) U.S. equities have zero correlation with world government bonds and with the commodities index.
• E) most assets (including common stocks) have positive correlations with inflation.

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Definitions:

Synapomorphies

Shared derived characters or traits that are used to determine evolutionary relationships among organisms.

Exoskeletons

External skeletons that support and protect an organism's body, found in arthropods like insects, crabs, and lobsters.

Marsupial Colonization

The process by which marsupials, a group of mammals typically characterized by premature birth and continued development in the mother's pouch, spread and establish populations in new areas.

Vicariant Events

Geological occurrences that physically separate organisms, leading to speciation by dividing ancestral populations into two or more reproductively isolated groups.