Which one of the following had the greatest volatility of returns for the period 1926-2012?
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 usually have the greatest volatility of returns compared to other asset classes, as they have a higher level of risk due to their size and business operations. According to historical data from 1926-2012, small-company stocks had an average standard deviation of 33.8%, which was higher than any other asset class listed in the options.

Which One of the Following Had the Greatest Volatility of Returns