Over the Period of 1926 Through 2012,the Annual Rate of Return

question 7

Multiple Choice

Over the period of 1926 through 2012,the annual rate of return on _____ has been more volatile than the annual rate of return on _____.

• A)large company stocks;small company stocks
• B)U.S.Treasury bills;small company stocks
• C)U.S.Treasury bills;long-term government bonds
• D)long-term corporate bonds;small company stocks
• E)large company stocks;long-term corporate bonds

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Definitions:

Unauthorized Signature

A signature made on a document by someone who doesn't have the legal authority or permission to sign it.

Negligence

Negligence is the failure to take proper care in doing something, leading to damage or injury to another person.

Fictitious Payee Rule

A legal principle stating that if a negotiable instrument is issued to a fictitious payee, it may be treated as payable to bearer, affecting endorsement requirements.

Imposter Rule

A rule that holds that if one obtains a negotiable instrument by impersonating another and endorses it with the impersonated party’s signature, the loss falls on the drawer of the instrument.