Which one of the following had the greatest volatility of returns for the period 1926-2015?
A) large-company stocks
B) U.S. Treasury bills
C) long-term government bonds
D) small-company stocks
E) long-term corporate bonds

Question

Quizplus · Accepted Answer

Small-company stocks have historically had the greatest volatility of returns among the asset classes listed for the period 1926-2015. According to Morningstar data, the annualized standard deviation for small-company stocks (represented by the CRSP 6-10 Index) was 33.7%, compared to 20.8% for large-company stocks, 3.2% for U.S. Treasury bills, 11.4% for long-term government bonds, and 16.5% for long-term corporate bonds.

Which One of the Following Had the Greatest Volatility of Returns