The fact that historical returns on Treasury bonds are less volatile than common stock returns indicates that:
A) the variance of Treasury bond returns is zero.
B) the standard deviation of Treasury bond returns is negative.
C) the real return on Treasury bonds has been negative.
D) common stocks should offer a higher return than Treasury bonds.

Question

Quizplus · Accepted Answer

Common stocks typically offer a higher return than Treasury bonds to compensate for their higher risk and volatility.

The Fact That Historical Returns on Treasury Bonds Are Less