Monday, November 11, 2019

The average annual return on small-company stocks was about _____ percent greater than the average annual return

The average annual return on small-company stocks was about _____ percent greater than the average annual return on large-company stocks over the period 1926-2010. 
 
A. 
3

B. 
5

C. 
7

D. 
9

E. 
11
Refer to section 12.3

31.
Which one of the following was the least volatile over the period of 1926-2010? 
 
A. 
large-company stocks

B. 
inflation

C. 
long-term corporate bonds

D. 
U.S. Treasury bills

E. 
intermediate-term government bonds
Refer to section 12.4


32.
Which one of the following statements is correct? 
 
A. 
The greater the volatility of returns, the greater the risk premium.

B. 
The lower the volatility of returns, the greater the risk premium.

C. 
The lower the average return, the greater the risk premium.

D. 
The risk premium is unrelated to the average rate of return.

E. 
The risk premium is not affected by the volatility of returns.
Refer to sections 12.3 and 12.4


33.
Which of the following correspond to a wide frequency distribution?

I. relatively low risk
II. relatively low rate of return
III. relatively high standard deviation
IV. relatively large risk premium 
 
A. 
II only

B. 
III only

C. 
I and II only

D. 
II and III only

E. 
III and IV only
Refer to section 12.4

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