Which One of the Following Is a Correct Ranking of Securities

question 79

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 volatility to lowest volatility.

• A)Small-company stocks,large-company stocks,long-term government bonds
• B)Large-company stocks,U.S.Treasury bills,long-term government bonds
• C)Small-company stocks,long-term government bonds,large-company stocks
• D)Long-term corporate bonds,large-company stocks,U.S.Treasury bills
• E)Small-company stocks,long-term corporate bonds,large-company stocks

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Definitions:

Working Papers

Documents that evidence preliminary findings or drafts used in preparing a final document, often in accounting or research.

Accountant-Client Privilege

A legal principle allowing confidentiality of communication between accountants and their clients, similar to attorney-client privilege.

Notes

Legal documents that serve as evidence of a debt, with the issuer promising to pay the holder a specific sum of money at a future date or upon demand.

Restatement Test

A legal principle used in contracts to determine the intent of the parties to enter into a contractual agreement.