Fundamentals of Investments: Valuation and Management 9th Edition by Bradford Jordan test bank
25.
Award: 1.00 point
Which one of the following had the highest risk premium for the period 1926-2018?
U.S. Treasury bills
long-term government bonds
large-company stocks
small-company stocks
intermediate-term government bonds
See Section 1.3
References
Multiple Choice Learning Objective:
01-03 The historical
risks on various
important types of
investments.
Difficulty: 1 Easy Section: 1.3 Average
Returns: The First
Lesson
26.
Award: 1.00 point
Based on the period 1926-2018, the risk premium for U.S. Treasury bills was:
0%
1.2%
2.0%
2.4%
2.7%
See Section 1.3
References
Multiple Choice Learning Objective:
01-03 The historical
risks on various
important types of
investments.
Difficulty: 1 Easy Section: 1.3 Average
Returns: The First
Lesson
27.
Award: 1.00 point
Based on the period of 1926-2018, the risk premium for small-company stocks averaged:
12.3%
13.9%
15.0%
16.8%
17.4%
See Section 1.3
References
Multiple Choice Learning Objective:
01-03 The historical
risks on various
important types of
investments.
Difficulty: 1 Easy Section: 1.3 Average
Returns: The First
Lesson
28.
Award: 1.00 point
The average risk premium on large-company stocks for the period 1926-2018 was:
6.7%
8.3%
8.5%
12.3%
13.6%
See Section 1.3
References
Multiple Choice Learning Objective:
01-03 The historical
risks on various
important types of
investments.
Difficulty: 1 Easy Section: 1.3 Average
Returns: The First
Lesson
29.
Award: 1.00 point
The average risk premium on long-term corporate bonds for the period 1926-2018 was:
2.4%
2.9%
3.3%
3.7%
3.9%
See Section 1.3
References
Multiple Choice Learning Objective:
01-03 The historical
risks on various
important types of
investments.
Difficulty: 1 Easy Section: 1.3 Average
Returns: The First
Lesson
30.
Award: 1.00 point
Which one of the following had the narrowest bell curve for the period 1926-2018?
large-company stocks
long-term corporate bonds
long-term government bonds
small-company stocks
U.S. Treasury bills
See Section 1.4
References
Multiple Choice Learning Objective:
01-03 The historical
risks on various
important types of
investments.
Difficulty: 1 Easy Section: 1.4 Return
Variability: The
Second Lesson
31.
Award: 1.00 point
Which one of the following had the greatest volatility of returns for the period 1926-2018?
large-company stocks
U.S. Treasury bills
long-term government bonds
small-company stocks
long-term corporate bonds
See Section 1.4
References
Multiple Choice Learning Objective:
01-03 The historical
risks on various
important types of
investments.
Difficulty: 1 Easy Section: 1.4 Return
Variability: The
Second Lesson
32.
Award: 1.00 point
Which one of the following had the smallest standard deviation of returns for the period 1926-2018?
large-company stocks
small-company stocks
long-term government bonds
intermediate-term government bonds
long-term corporate bonds
See Section 1.4
References
Multiple Choice Learning Objective:
01-03 The historical
risks on various
important types of
investments.
Difficulty: 1 Easy Section: 1.4 Return
Variability: The
Second Lesson
33.
Award: 1.00 point
For the period 1926-2018, 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.
exceeded; was less than
exceeded; equaled
exceeded; exceeded
was less than; exceeded
was less than; was less than
See Section 1.4
References
Multiple Choice Learning Objective:
01-04 The
relationship
between risk and
return.
Difficulty: 2
Medium
Section: 1.4 Return
Variability: The
Second Lesson
34.
Award: 1.00 point
The mean plus or minus one standard deviation defines the ________ percent probability range of