- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 62. Portfolio Risk and Return: Part I
- Subject 2. Historical Return and Risk

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**CFA Practice Question**

From 1900 to 2008, ______

B. the standard deviation of returns from T-bills was 0.

C. T-bills suffered very little from interest rate risk.

A. T-bills never earned a negative real return in any year.

B. the standard deviation of returns from T-bills was 0.

C. T-bills suffered very little from interest rate risk.

Correct Answer: C

T-bills earned a negative return only in 1938. The standard deviation was 3.1, not 0.

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**User Contributed Comments**
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User |
Comment |
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johntan1979 |
pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/histret.html Good reference to see the "risk" of investing in T bills over a long period of time. Not sure why the T bill return in 1938 is not negative as described in the answer. |