Investments that have earned the highest rates of return over time also have
A)the lowest risk.
B)the highest standard deviation of returns.
C)the largest market capitalisation.
D)the least sensitivity to inflation.

Question

Quizplus · Accepted Answer

Investments that have earned the highest rates of return over time generally have a higher standard deviation of returns, indicating higher volatility and risk. This includes investments such as stocks, which have higher potential for returns but also higher risk. Investments with lower risk, such as bonds or cash, typically have lower rates of return over time. Therefore, the answer is B as it explains the relationship between high rates of return and higher risk.

Investments That Have Earned the Highest Rates of Return Over