Rank the order of standard deviation of returns from highest to lowest for the following classes of U.S.securities for the time period 1926 - 2011.
A)small stocks,large stocks,30-year Treasury bonds,and 90-day T-bills
B)large stocks,small stocks,30-year Treasury bonds,and 90-day T-bills
C)90 -day T-bills,large stocks,30-year Treasury bonds,small stocks
D)30-year Treasury bonds,large stocks,small stocks,90-day T-bills

Question

Quizplus · Accepted Answer

According to historical data, the order of standard deviation of returns from highest to lowest for the given classes of U.S. securities for the period 1926-2011 is as follows:
1. Small stocks
2. Large stocks
3. 30-year Treasury bonds
4. 90-day T-bills
Therefore, option A is the correct answer as it arranges the securities in the correct order. Option B and D have swapped the order of small and large stocks. Option C has only one security in the correct order.

Rank the Order of Standard Deviation of Returns from Highest