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From 1926-1985, a Comparison of the Stock and Bond Market

Question 57

Multiple Choice

From 1926-1985, a comparison of the stock and bond market shows


A) a coefficient of correlation of +.9 on their annual returns.
B) annual bond price changes were more frequently negative than positive.
C) bonds had a higher average annual return.
D) bonds had a higher average standard deviation of their annual return.

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