Over the period 1926-2007,which of the following financial assets showed the greatest amount of price volatility,as measured by standard deviation?
A)Small-cap stocks
B)Large-cap stocks
C)Treasury bonds
D)Treasury bills

Question

Quizplus · Accepted Answer

Small-cap stocks have historically demonstrated the greatest amount of price volatility, as measured by standard deviation, over the period 1926-2007. This is due to their lower market capitalization, which makes them more susceptible to swings in investor sentiment and changes in economic conditions. In contrast, larger, more established companies tend to exhibit greater stability in their stock prices, making them less volatile. Treasury bonds and bills are generally considered to be safe, low-risk investments and therefore exhibit lower levels of price volatility.

Over the Period 1926-2007,which of the Following Financial Assets Showed