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16/% UV.ULTI Vincent Pape 32 minutes ago 33. Over the past 84 years, we have observed that investments with the highest average annual returns also
16/% UV.ULTI Vincent Pape 32 minutes ago 33. Over the past 84 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 Tisk and return), where the security with the highest risk is shown first, and the one with the lowest risk last? Small-company stocks, long-term corporate bonds, large-company stocks long-term government bonds, US Treasury bills. Large-company stocks, small-company stocks, long-term corporate bonds U.S. Treasury bills, long-term government bonds. U.S. Treasury bills, long-term government bonds, long-term corporate bonds, small-company stocks, large company stocks. Small-company stocks, large company stocks, long-term corporate bonds. long-term government bonds, U.S. Treasury bills. Large-company stocks, small company stocks, long-term corporate bonds. long-term government bonds, US Treasury bills. e. 34. During the semester, we read Chapter 20 of Benjamin Graham's The Intelligent Investor wherein he described not only the concept of "margin of safety", but also the psychological and emotional disciplines required in investing. What was emphasized in the reading? b. He warned investors not to acquire the common stocks (and bonds) of low quality companies at a market nadir (upper price levels of market). That when one is purchasing common stocks, to buy them "cheap in relation to appraised worth, or intrinsic value"... He advised investors to buy common stocks only when the price was low in relation to earnings, and low in relation to accounting book value. He suggested always avoiding the purchase of non-representative (or lower quality) companies that carry a higher-than-average risk of diminished earning power. In sum, he advised that investors who acquire "mediocre securities at a fair-weather price would have a poor end-result". That speculation was foolish. While neither illegal nor unethical, over time, speculating in securities was unlikely to lead to a larger net worth. All of the above
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