Over the Period 1995-2015, Which Pair of Investments Does Not

question 35

Multiple Choice

Over the period 1995-2015, which pair of investments does not perfectly fit the "higher risk, higher return" pattern?

• A) Government bonds, treasury bills
• B) U.S. equities, corporate bonds
• C) U.S. Equities, international equities
• D) Corporate bonds, international equities

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Definitions:

Retention Ratio

The percentage of net income that is retained by a company rather than distributed to its shareholders as dividends.

Quarterly Earnings

A corporation's earnings reported on a quarterly basis, giving investors and analysts an interim view of financial performance and profitability.

Stock Split

A company strategy to divide its existing shares into a larger number of shares to enhance the liquidity of the shares.

Market Price

The now prevailing cost at which one can buy or sell an asset or service.