When ranking the riskiness of securities using the standard deviation, the highest risk security to the lowest risk security is as follows:
A)Small stocks, large stocks, long-term government bonds, U.S. treasury bills.
B)Long-term government bonds, small stocks, large stocks, U.S. treasury bills.
C)Large stocks, small stocks, long-term government bonds, U.S. treasury bills.
D)Small stocks, long-term government bonds, large stocks, U.S. treasury bills.
E)U.S. treasury bills, long-term government bonds, large stocks, small stocks.

Question

Quizplus · Accepted Answer

Small stocks typically exhibit the highest volatility, followed by large stocks, then long-term government bonds, with U.S. treasury bills being the least risky due to their short-term nature and government backing.

When Ranking the Riskiness of Securities Using the Standard Deviation