Which of the following portfolios has the least risk?
A)A portfolio of Treasury bills
B)A portfolio of long-term U.S. government bonds
C)A portfolio of U.S. common stocks of small firms
D)A portfolio of U.S. common stocks of large firms

Question

Quizplus · Accepted Answer

Treasury bills are considered to have the least risk because they are backed by the U.S. government and have a low volatility compared to other investments. Long-term U.S. government bonds have slightly higher risk due to interest rate changes, U.S. common stocks of small firms have higher risk associated with the company's performance, and U.S. common stocks of large firms have moderate risk associated with market fluctuations.

Which of the Following Portfolios Has the Least Risk