Which of the following financial assets has both the highest risk and highest return for the period of 1926-2009?
A) small company stocks
B) large company stocks
C) corporate bonds
D) Treasury bills

Question

Quizplus · Accepted Answer

Small company stocks have historically shown the highest risk and highest return among the given options for the period of 1926-2009. This has been observed in several studies such as the study conducted by Ibbotson and Sinquefield in the 1980s. It is important to note, however, that past performance does not guarantee future results and that investing in high-risk assets should be done with caution and after thorough research.

Which of the Following Financial Assets Has Both the Highest