Question

If you were to use the standard deviation as a measure of investment risk, which of the following has historically beel the highest risk investment? A. U.S. Treasury bills B. lang-term government bonds C. common stock of small firms D. common stock of large firms

Answer 1

Step-by-step explanation:

Standard deviation is a method used to measure investment risk. A higher standard deviation implies a higher risk thus option c i.e. smaller firms are associated with higher risks.