Which of the following assets had both the lowest average annual return and lowest risk between 1926 and 2015?
A) small company stocks
B) large company stocks
C) long-term corporate bonds
D) U.S. Treasury bills

Question

Quizplus · Accepted Answer

U.S. Treasury bills had the lowest average annual return and lowest risk between 1926 and 2015. During this period, the average annual return for U.S. Treasury bills was 3.5%, which was lower than the returns for small company stocks, large company stocks, and long-term corporate bonds. However, U.S. Treasury bills also had the lowest risk, as measured by their standard deviation, compared to the other assets.

Which of the Following Assets Had Both the Lowest Average