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The Period 1926-2011 Illustrates That U.S.Treasury Bills

Question 36

Multiple Choice

The period 1926-2011 illustrates that U.S.Treasury bills:


A) outperform inflation by approximately 1 percent every year.
B) have a zero standard deviation.
C) can either outperform or underperform inflation on an annual basis.
D) produce a rate of return roughly equivalent to the rate of return on long-term government bonds.
E) routinely have negative annual returns.

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