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4. Here is the some market data on different classes of securities Security groups Small company Stocks Large company Stocks Long-term Corporate Bonds Long-term Government
4. Here is the some market data on different classes of securities Security groups Small company Stocks Large company Stocks Long-term Corporate Bonds Long-term Government Bonds T-Bills Average Return ( 1926-2014) 16.7% 12.1% 6.4% 6.1% 3.5% T-bills are the riskfree asset. Based on the average historical returns in this table, are the other securities risky? How do you know? Which of the other securities is the most risky? How do you know ?
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