TCO 8) Over the period of 1955-2006: (Points : 3) long-term government bonds und
ID: 2672201 • Letter: T
Question
TCO 8) Over the period of 1955-2006: (Points : 3)long-term government bonds underperformed large corporate stocks.
small-company stocks underperformed large-company stocks.
inflation exceeded the rate of return on U.S. Treasury bills.
U.S. Treasury bills outperformed long-term government bonds.
2. (TCO 8) If the financial markets are efficient, then: (Points : 3)
stock prices should never change.
stock prices should only respond to unexpected news and events.
stock prices should increase or decrease slowly as new events are analyzed and the information is absorbed by the markets.
stock prices will only change when an event actually occurs, not at the time the event is anticipated.
need to select one answer for each question.
Explanation / Answer
1) long-term government bonds underperformed large corporate stocks.
2) stock prices should only respond to unexpected news and events
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