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 capitalization.
D)the least sensitivity to inflation.

Question

Quizplus · Accepted Answer

Investments that have earned the highest rates of return over time generally have the highest standard deviation of returns, which indicates a higher degree of risk. Higher returns often come with higher risk, so it is important to carefully consider the level of risk that you are willing to take on before making investment decisions. The other options (A, C, and D) are not necessarily associated with high returns or low risk.

Investments That Have Earned the Highest Rates of Return Over