Question

Stocks with high returns are expected to have​ ________. A. inverse relationship with variability B. high variability C. low variability D. no relation to variability

Answer 1

Answer: The correct answer is : B. high variability

Explanation: On average, stocks have generated higher returns than long-term bonds. In the United States in the long term, small shares have provided the highest return followed by large shares in the S&P 500. Historically, the shares have had a higher average return compared to the Treasury bills.