If you were to plot the return of asset classes on a graph with the standard deviation of returns on the horizontal axis and expected returns on the vertical axis,then which security class is most likely to be in the farthest upper right hand corner of the graph?

Question

Quizplus · Accepted Answer

Stocks are typically associated with higher expected returns and higher volatility (standard deviation of returns) compared to the other asset classes listed. Therefore, they are more likely to be located in the upper right-hand corner of the graph, indicating high expected returns and high risk.

If You Were to Plot the Return of Asset Classes