Which of the following represents the correct ordering of standard deviation of returns over the period 1926 to 2008 (from highest to lowest standard deviation of returns)?

Question

Quizplus · Accepted Answer

The correct ordering of standard deviation of returns over the period 1926 to 2008 (from highest to lowest standard deviation of returns) is Small firm common stocks, Common stocks, Long-term corporate bonds, Treasury bills. So, the only option that matches this ordering is B. Treasury bills have the lowest standard deviation of returns, followed by long-term corporate bonds, then common stocks, and small firm common stocks have the highest standard deviation of returns.

Which of the Following Represents the Correct Ordering of Standard