Historical evidence on the returns of large portfolios of stock and bonds shows that investments with higher volatility have rewarded investors with higher returns.

Question

Quizplus · Accepted Answer

This statement is generally true, as stocks and bonds with higher volatility (i.e. greater fluctuations in price) tend to have higher returns over the long term. However, it is important to note that this relationship is not always consistent and there are many factors that can affect investment returns.

Historical Evidence on the Returns of Large Portfolios of Stock