Which of the following represents the correct ordering of standard deviation of returns over the period 1926 to 2011 (from highest to lowest standard deviation of returns)?

Question

Quizplus · Accepted Answer

The correct order of standard deviation of returns over the period 1926 to 2011 is: small firm common stocks (standard deviation of 32.9%), common stocks (standard deviation of 20.2%), long-term corporate bonds (standard deviation of 9.3%), and Treasury bills (standard deviation of 3.3%). Therefore, option B represents the correct ordering of standard deviation of returns from highest to lowest.

Which of the Following Represents the Correct Ordering of Standard