Compared with long-term securities, the prices of short-term securities are always
A) more volatile.
B) less volatile.
C) higher.
D) lower.

Question

Quizplus · Accepted Answer

Short-term securities typically have lower volatility compared to long-term securities because they have a shorter maturity and are less affected by changes in interest rates and economic factors. This makes them less risky but also typically results in lower yields.

Compared with Long-Term Securities, the Prices of Short-Term Securities Are