37.Which one of the following had the smallest standard deviation of returns for the period 1926-2006?A.large-company stocksB.small-company stocksC.long-term government bondsD.intermediate-term government bondsE.long-term corporate bonds

LEVEL OF DIFFICULTY: CORELearning Objective: 1-3SECTION: 1.4TOPIC: HISTORICAL RISK38.For the period 1926-2006, long-term government bonds had an average return that ______the average return on long-term corporate bonds while having a standard deviation that _______ the standard deviation of the long-term corporate bonds.

LEVEL OF DIFFICULTY: INTERMEDIATELearning Objective: 1-4SECTION: 1.4TOPIC: HISTORICAL RISK AND RETURN1-13

##### We have textbook solutions for you!

**The document you are viewing contains questions related to this textbook.**

**The document you are viewing contains questions related to this textbook.**

Expert Verified

Chapter 001 A Brief History of Risk and Return39.The mean plus or minus one standard deviation defines the _____ percent probability range of a normal distribution.

LEVEL OF DIFFICULTY: CORELearning Objective: 1-3SECTION: 1.4TOPIC: PROBABILITY RANGES40.Assume you own a portfolio that is invested 50 percent in large-company stocks and 50 percent in corporate bonds. If you want to increase the potential annual return on this portfolio, you could:

LEVEL OF DIFFICULTY: INTERMEDIATELearning Objective: 1-4SECTION: 1.4TOPIC: RISK AND RETURN41.Which one of the following statements is correct?A.The standard deviation of the returns on Treasury bills is zero.B.Large-company stocks are historically riskier than small-company stocks.C.The variance is a means of measuring the volatility of returns on an investment.D.A risky asset will always have a higher annual rate of return than a riskless asset.E.There is an indirect relationship between risk and return.

LEVEL OF DIFFICULTY: INTERMEDIATELearning Objective: 1-4SECTION: 1.4TOPIC: RISK AND RETURN1-14

Chapter 001 A Brief History of Risk and Return42.The wider the distribution of an investment's returns over time, the _____ the expected average rate of return and the ______ the expected volatility of those returns.

LEVEL OF DIFFICULTY: CORELearning Objective: 1-4SECTION: 1.4TOPIC: RISK AND RETURN