The textbook provides a history of returns from 1950 through 1999 for four classifications of securities in the United States.Rank the average standard deviation ( measure of risk)from the highest to lowest over this time period.
A)Large-company stocks,small-company stocks,3-month U.S.Treasury bills,long-term government bonds
B)Long-term government bonds,3-month U.S.Treasury bills,small-company stocks,large-company stocks
C)Small-company stocks,large-company stocks,long-term government bonds,3-month U.S.Treasury bills
D)Large-company stocks,long-term government bonds,small-company stocks,3-month U.S.Treasury bills

Question

Quizplus · Accepted Answer

Small-company stocks typically exhibit higher volatility compared to large-company stocks, reflecting their higher risk. Long-term government bonds also carry risk, particularly interest rate risk, but less so than stocks. 3-month U.S. Treasury bills are considered the safest and least volatile, as they are short-term government securities.

The Textbook Provides a History of Returns from 1950 Through