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21.
Which one of the following statements correctly applies to the period 1926-
2010?
22.
Which one of the following time periods is associated with high rates of
inflation?
23.
Which one of the following statements concerning U.S. Treasury bills is
correct for the period 1926- 2010?
24.
Which one of the following is a correct ranking of securities based on their
volatility over the period of 1926-2010? Rank from highest to lowest.
25.
What was the highest annual rate of inflation during the period 1926-2010?
26.
The excess return is computed as the:
27.
Which one of the following earned the highest risk premium over the period
1926-2010?
28.
What was the average rate of inflation over the period of 1926-2010?
29.
Assume that you invest in a portfolio of large-company stocks. Further
assume that the portfolio will earn a rate of return similar to the average
return on large-company stocks for the period 1926-2010. What rate of
return should you expect to earn?
30.
The average annual return on small-company stocks was about _____
percent greater than the average annual return on large-company stocks
over the period 1926-2010.
31.
Which one of the following was the least volatile over the period of 1926-
2010?
32.
Which one of the following statements is correct?
33.
Which of the following correspond to a wide frequency distribution?
I. relatively low risk
II. relatively low rate of return
III. relatively high standard deviation
IV. relatively large risk premium
34.
To convince investors to accept greater volatility, you must:
35.
If the variability of the returns on large-company stocks were to increase
over the long-term, you would expect which of the following to occur as a
result?
I. decrease in the average rate of return
II. increase in the risk premium
III. increase in the 68 percent probability range of the frequency distribution
of returns
IV. decrease in the standard deviation
36.
Which one of the following statements is correct based on the historical
record for the period 1926-2010?
37.
What is the probability that small-company stocks will produce an annual
return that is more than one standard deviation below the average?
38.
According to Jeremy Siegel, the real return on stocks over the long-term has
averaged about:
39.
The historical record for the period 1926-2010 supports which one of the
following statements?
40.
Which of the following statements are true based on the historical record
for 1926-2010?
I. Risk and potential reward are inversely related.
II. Risk-free securities produce a positive real rate of return each year.
III. Returns are more predictable over the short-term than they are over the
long-term.
IV. Bonds are generally a safer investment than are stocks.
41.
Estimates of the rate of return on a security based on a historical arithmetic
average will probably tend to _____ the expected return for the long-term
and estimates using the historical geometric average will probably tend to
_____ the expected return for the short-term.
