Which One of the Following Is a Correct Ranking of Securities

question 21

Multiple Choice

Which one of the following is a correct ranking of securities based on their volatility over the period of 1926 to 2012? 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:

Gains

Refers to increases in wealth, income, or resources, often resulting from investment or business operations.

Losses

The negative financial result from an entity's operations, when the total costs exceed total revenues.

Game Theory

A mathematical and analytical framework used to study strategic interactions among rational decision-makers, aiming to predict outcomes in competitive situations.

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies while the other players keep theirs unchanged.