Chapter 7 (Introduction to Risk and Return) 49. Investments are generally divided into three distinct groups...treasury bills, bonds, and equities (stocks). Which of the three has experienced the greatest volatility over the past 100 years yet has provided the highest returns? A Treasury Bills B. Bonds C Equities S0. Which of the following is considered the most secure investment but has traditionally yielded a relatively small return? A. Equities of Blue Chip Companies 8. AAA rated corporate bonds C. Long Term Government Bonds D. Short term treasury bills 51. Over the las t 100 years, dividend yields have continually declined. What might be a reason for the decline? A. The intervention by the us Govt in setting interest rates B. The general decline of stock prices C. The general increase in stock prices D. Dividend yields have not been adjusted for inflation 52. The two terms most often used when attempting to measure volatility and risk are A. Beta and the Sharpe ratio B. Beta and Gamma C. Standard Deviation and Beta D. Dividend Yields and Earnings per Share 53. What is the relationship between variance and standard deviation? A. Standard deviation is the square root of the variance B. Variance is the square root of the standard deviation C. Standard deviation plus the variance equals beta D. They have no direct relationship 54. Investors prefer diversified companies because they are less risky A. True B. False