Multiple Choice
The fact that historical returns on Treasury bills are less volatile than common stock returns indicates that:
A) the variance of Treasury bill returns is zero.
B) the standard deviation of Treasury bill returns is negative.
C) the real return on Treasury bills has been negative.
D) common stocks should offer a higher return than Treasury bills.
Correct Answer:

Verified
Correct Answer:
Verified
Q6: Calculate the expected return, variance, and standard
Q6: The expected return on an investment provides
Q8: Which one of the following statements seems
Q10: What is the standard deviation of returns
Q14: Although several stock indexes are available to
Q15: What is the approximate standard deviation of
Q19: Assume market interest rates have risen substantially
Q48: The actual real rate of return on
Q55: Over a 20-year period an investment of
Q60: Which one of the following guarantees is