Which of the Following Sequences Is Arranged in the Correct

question 45

Multiple Choice

Which of the following sequences is arranged in the correct order,from highest long-term returns to lowest?

• A)Small stocks,government bonds,large stocks
• B)Large stocks,treasury bills,small stocks
• C)Small stocks,large stocks,treasury bills
• D)Government bonds,large stocks,treasury bills

---

Definitions:

Principal Amount

The original sum of money borrowed in a loan, or the original investment in a financial instrument, before interest.

Maturity Value

Maturity Value is the amount to be paid to the holder of a financial instrument at its maturity date, including the principal and any remaining interest.

Notes Receivable (New)

Financial assets representing written promises for payments to be received by a party, usually including interest.

Notes Receivable (Old)

Financial assets representing amounts due to be received from debtors under formal agreements or promissory notes that are no longer current.