Over the period of 1926-2014 and among the investment classes presented, ______ had the highest average...

Over the period of 1926-2014 and among the investment classes presented, ______ had the highest average return, ______ had the lowest average return, and ______ had the highest risk premium.

Expert Solution

BLANK 1 : SMALL COMPANY STOCKS

BLANK 2: T BILLS

BLANK 3 : SMALL COMPANY STOCKS

Explanation : During the period of 1926 -2014, Small company stock had highest return and highest risk, where as T bill has lowest risk and lowest risk. After small company stock comes large company stocks, then corporate bonds and then Govt bonds. And it follows that higher the risk, higher the volatility, stnadard deviation, risk[Thumbs up please]

jeff jeffy answered 2 years ago

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