Which of the following statements is CORRECT?
A) Compared to stocks, bonds have a higher return.
B) Compared to stocks, bond returns have a higher standard deviation.
C) Compared to bonds, stock returns have a lower standard deviation.
D) Compared to bonds, stock returns have a higher standard deviation.

Question

Quizplus · Accepted Answer

Stock returns have a higher standard deviation compared to bonds, as stocks are considered more volatile and risky than bonds.

Which of the Following Statements Is CORRECT