question archive Which one of the following is a correct ranking of securities based on their volatility over the period of 1926 to 2014? Rank from highest to lowest
Which one of the following is a correct ranking of securities based on their volatility over the period of 1926 to 2014? Rank from highest to lowest
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Which one of the following is a correct ranking of securities based on their volatility over the period of 1926 to 2014? Rank from highest to lowest.
long-term government bonds, long-term corporate bonds, small-company stocks
small-company stocks, long-term corporate bonds, large-company stocks
long-term corporate bonds, large-company stocks, U.S. Treasury bills
large-company stocks, U.S. Treasury bills, long-term government bonds
small-company stocks, large-company stocks, long-term corporate bonds
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Answer:
Small company stocks are highly risky due to their small market capitalization and they are more exposed to bearish market sentiments. Large company stock are moderately risky as they have large market capitalization. Long term corporate bonds are least risky among them.
So, the statement (D) is correct. small-company stocks, large-company stocks, long-term corporate bonds.
