Which Sequence Is Arranged in the Correct Order, from Highest

question 50

Essay

Which sequence is arranged in the correct order, from highest expected long-term returns to lowest?
A.Small shares, government bonds, large shares
B.Large shares, Treasury notes, small shares
C.Small shares, large shares, Treasury notes
D.Government bonds, large shares, Treasury notes

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Definitions:

MC

Marginal Cost, the change in total production cost that comes from making or producing one additional unit.

AFC

AFC, or Average Fixed Cost, is the total fixed costs of production divided by the quantity of output produced.

Output

The total amount of goods or services produced by a company, industry, or economy within a specified period.

Fixed Costs

Expenses that do not change with the volume of output, such as rent, salaries, and insurance premiums.