In Figure 1–4, what has been the highest return investment category over the 79-year period? What has been the lowest? Assuming risk is measured by the standard deviation, what can you say about the relationship of risk to return in Figure 1–4?

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FIGURE 1-4 Basic Series: Summary Statistics of Annual Total Returns from 1926-2005 Geometric Arithmetic Standard Series Mean Mean Deviation Distribution Large-company stocks 10.4% 12.3% 20.2% Small-company stocks 12.6 17.4 32.9 Long-term corporate bonds 6.2 5.9 8.5 Long-term government 5.5 5.8 9.2 Intermediate-term government 5.3 5.5 5.7 U.S. Treasury bills 3.8 3.7 3.1 Inflation 3.0 3.1 4.3 -90% 90%