Which one of the following is a correct ranking of securities based on their volatility over the period of 1926 to 2017? Rank from highest to lowest volatility.
A)Large-company stocks,intermediate-term government bonds,long-term government bonds
B)Small-company stocks,long-term corporate bonds,large-company stocks
C)Long-term government bonds,long-term corporate bonds,small-company stocks
D)Small-company stocks,large-company stocks,long-term corporate bonds
E)Long-term corporate bonds,large-company stocks,U.S.Treasury bills

Question

Quizplus · Accepted Answer

Small-company stocks have historically shown the highest volatility, followed by large-company stocks, and then long-term corporate bonds.

Which One of the Following Is a Correct Ranking of Securities