Review Figure 6.2. In which of those financial assets (broad categories) would you recommend your 24-year old sibling invest toward retirement? Please explain your reasoning.*I WILL THUMBS UP*

FIGURE 6-2 Historical Rates of Return Securities Nominal Average Annual Returns Standard Deviation of Returns Real Average Annual Returnsa Risk Premiumb 11.8% 20.3% 8.7% 8.0% Large- company stocks Small- company stocks 16.5% 32.5% 13.4% 12.7% Corporate bonds 6.4% 8.4% 3.3% 2.6% Intermediate-term government bonds 5.5% 5.7% 3.0% 2.3% U.S. Treasury bills 3.8% 3.1% 0.7% 0.0% Inflation 3.1% 4.2% aThe real return equals the nominal returns less the inflation rate of 3.1 percent. bThe risk premium equals the nominal security return less the average risk-free rate (Treasury bills) of 3.8 percent. Source: Data from Summary Statistics of annual Total Returns: 1926 to 2011 Yearbook. Copyright 2012 Ibbotson Associates Inc