What conclusion should you draw from the performance of stocks and bonds over the period 1926 to 2015?
A)Bonds have greater volatility than stocks.
B)Stock returns have a lower standard deviation than bond returns.
C)In any year,stocks will outperform bonds.
D)Stock returns have a smaller risk premium than bond returns.
E)Stocks are riskier than bonds.

Question

Quizplus · Accepted Answer

Stocks are generally riskier than bonds, as evidenced by their higher volatility and larger fluctuations in returns over the period from 1926 to 2015.

What Conclusion Should You Draw from the Performance of Stocks