Which one of the following security classes has the highest standard deviation of returns?
A) Common stocks
B) Long-term Treasury bonds
C) Treasury bills
D) Corporate bonds

Question

Quizplus · Accepted Answer

Common stocks are generally considered to have the highest level of risk and volatility compared to other asset classes, which results in higher standard deviation of returns. Long-term Treasury bonds, Treasury bills, and corporate bonds are generally considered to be less risky, i.e. lower volatility, than common stocks. Therefore, based on the given options, common stocks have the highest standard deviation of returns.

Which One of the Following Security Classes Has the Highest