1. Consider the returns for various asset classes, which of the following statements is correct?

   		A) Small-cap stocks have earned a higher return than large-cap stocks.
   		B) Treasury bonds have earned a lower return than Treasury bills.
   		C) Treasury bonds have earned a higher return than corporate bonds.
   		D) Large-cap stocks have earned a lower return than Treasury bonds.

QUESTION 14

1. Q14: Given two stock return distributions, which of the two stocks is riskier?

   		A) The one with the lower expected return.
   		B) The one with potential outcomes more concentrated around its expected return.
   		C) The one with a greater variance of returns.
   		D) The one with a distribution that is less spread out.

* Please explain your reasoning! *