Historically,investments with the highest returns have the lowest standard deviations because investors do not like risk.

Question

Quizplus · Accepted Answer

This statement is false. Investments with higher potential returns often come with higher levels of risk and volatility, meaning their standard deviations can be quite high. Investors who are comfortable with taking on more risk may choose to invest in these assets in the hopes of achieving greater returns, while others may prefer to stick with lower-risk investments with lower potential returns.

Historically,investments with the Highest Returns Have the Lowest Standard Deviations