Which of the following statements is true?
A)The expected return and standard deviation of return are greater for common stock than for U.S.treasury bills.
B)The expected return on common stocks is greater than the expected return on U.S treasury bills,but the standard deviation of return for common stocks is less than the standard deviation of return for U.S.treasury bills
C)The expected return on common stocks is less than the expected return on U.S treasury bills,but the standard deviation of return for common stocks is greater than the standard deviation of return for U.S.treasury bills.
D)The expected return and standard deviation of return are less for common stocks than for U.S.treasury bills.

Question

Quizplus · Accepted Answer

Common stocks are generally riskier than U.S. Treasury bills, as they are subject to market fluctuations and company-specific risks. Therefore, the expected return and standard deviation of return for common stocks are greater than for U.S. Treasury bills.

Which of the Following Statements Is True