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 zero
D)Common stocks should offer a higher return than Treasury bills

Question

Quizplus · Accepted Answer

Treasury bills are considered low-risk investments with lower volatility, while common stocks are riskier and thus should offer higher returns to compensate for the increased risk.

The Fact That Historical Returns on Treasury Bills Are Less