Chapter 10 quiz
which one of the following types of securities has tended to produce the lowest real rate of return for the period 1926 through 2014?
US T-bills
Over the period of 1926 through 2014, the annual rate of return on ____ has been more volatile than the annual rate of return on ____
large-company stocks; long-term corporate bonds
Based on the period of 1926 through 2014, _____ have tended to outperform other securities over the long-term.
small-company stocks
which one of the following is a correct ranking of securities based on their volatility over the period of 1926 to 2014? Rank highest to lowest?
small-company stocks, large company stocks, long term corporate bonds
Which one of the following is a correct statement concerning risk premium?
the greater the volatility of returns, the greater the risk premium
which one of the following statements concerning the standard deviation is correct?
the higher the standard deviation, the higher the expected return