Which 2 assets generally have the lowest correlation?
Treasury Bonds and Corporate Bonds |
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US Stocks and Foreign Stocks |
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Airline Stocks and Auto Stocks |
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Technology Stocks and Treasury Bonds |
Option (d) is correct
Technology stocks and treasury bonds have the lowest correlation, because these are completely different securities. Thier price may not move in same direction. Technology stocks are more risky as compared to treasury bonds, that are considered as safe or risk free investment.
Which 2 assets generally have the lowest correlation? Treasury Bonds and Corporate Bonds US Stocks and...
Which of the following bonds will generally have the lowest default risk? a.) Bonds issued by the US Treasury b.) Municipal bonds c.) Corporate bonds of large companies d.) Corporate bonds of small companies e.) All of these bonds will have similar default risks
If the default risk of corporate bonds decreases, relative to US Treasury bonds, then the equilibrium yield on corporate bonds will_____ and the equilibrium yield on US Treasury bonds will _____. Group of answer choices rise; rise rise; fall fall; rise fall; fall
Which of the following has the lowest volatility in history? A. Treasury Bills B. S&P 500 C. Large Stocks D. Corporate Bonds E. Small Stocks
Dropdown on 1st description: state and local government bonds, us treasury notes, us treasury bills 2nd:bankers acceptances, commercial papers, money market mutual funds 3rd: eurodollar time deposits, consumer credit, money market mutual funds 4th: common stocks, preferred stocks, corporate bonds 3. Financial instruments Aa Aa Financial instruments are assets that have a monetary value or record a monetary transaction. To coordinate the exchange of capital between borrowers and lenders, financial instruments trade in the financial markets. These inancial instruments can...
Historical average returns for Large Company Common Stocks, Long Term Government Bonds, and US Treasury Bills for the period 10-year period of 1999 through 2008 are shown in the following table. Use these data to solve the next several problems. Year Large Common Stock Long Term Government Bonds US Treasury Bills 1999 0.2104 -0.0751 0.0480 2000 -0.0910 0.1722 0.0598 2001 -0.1189 0.0551 0.0333 2002 -0.2210 0.1515 0.0161 2003 0.2889 0.0201 0.0094 2004 0.1088 0.0812 0.0114 2005 0.0491 0.0689 0.0279 2006 0.1579...
Over the past 88 years, we have observed that investments with the highest average annual returns also tend to have the highest standard deviations of annual returns. This observation supports the notion that there is a positive correlation between risk and return. Which of the following answers correctly ranks investments from highest to lowest risk (and return), where the security with the highest risk is shown first, the one with the lowest risk last? Small-company stocks, long-term corporate bonds, large-company...
Over the past 89 years, we have observed that investments with the highest average annual returns also tend to have the highest standard deviations of annual returns. This observation supports the notion that there is a positive correlation between risk and return. Which of the following answers correctly ranks investments from highest to lowest risk (and return), where the security with the highest risk is shown first, the one with the lowest risk last? a. Large-company stocks, small-company stocks, long-term...
Consider the following average annual retums: Investment Small Stocks S&P 500 Corporate Bonds Treasure Bonds Treasury Bills Average Return 23.6% 13.7% 7.5% 6.7% 4.6% What is the excess return for Treasury bills? O A. 0% O B. - 2.1% O C. -2.9% OD. - 9.1%
The "ask" price in the dealer market for Treasury Bonds is the: lowest price for which a dealer will buy a T-bond lowest price for which a dealer will sell a T-bond highest price for which a dealer will sell a T-bond highest price for which a dealer will buy a T-bond You own a corporate bond which is yielding 8.2 percent. What is your after-tax yield if your marginal tax rate is 28 percent? 5.90 derecent 7.52 percent 9.43...
Consider the following average annual returns: Investment Small Stocks S&P 500 Corporate Bonds Treasure Bonds Treasury Bills Average Return 23.2% 13.5% 7.4% 6.9% 4.1% What is the excess return for the S&P 500? O A. 16.2% OB. 0% OC. 9.4% OD. 11.5%