Of the following different types of securities$,$ which is typically considered most risky?

a$)$ long$-$term corporate bonds

b$)$ long$-$term government bonds

c$)$ common stocks of large companies

d$)$ common stocks of small companies

If you were to use the standard deviation as a measure of investment risk, which of the

following has historically been the least risky investment?

a$)$ common stock of large firms

b$)$ U$.$S$.$ Treasury bills

c$)$ common stock of small firms

d$)$ long$-$term government bonds

When interest is earned on both the principle plus interest previously earned, it is called:

a$)$ Simple interest

b$)$ Complex interest

c$)$ Compound interest

d$)$ None of the above; interest is only calculated on principle $-$ not interest