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 most likely to be in the farthest upper right hand corner of the graph as they typically have higher expected returns and higher standard deviation of returns compared to the other asset classes listed.

If You Were to Plot the Return of Asset Classes