For the period 1926-2012,long-term government bonds had an average return that ______ the average return on long-term corporate bonds while having a standard deviation that _______ the standard deviation of the long-term corporate bonds.
A)exceeded; was less than
B)exceeded; equaled
C)exceeded; exceeded
D)was less than; exceeded
E)was less than; was less than

Question

Quizplus · Accepted Answer

Long-term government bonds typically have lower average returns compared to long-term corporate bonds due to lower risk. However, they often have higher standard deviations, indicating more variability in returns.

For the Period 1926-2012,long-Term Government Bonds Had an Average Return