Historical Risk vs Return by Asset Classes The 10-year average annual returns and standard deviations are shown below for various asset classes. Historical Risk vs. Return by Asset Class 10 High Yield Bonds U.S. Large 8 Cap Stocks Bonds 60%/40% U.S. Large Cap Stocks/Bonds 4 Emerging Mkt Int'l Stocks Developed Mkt Int'l Stocks Real Estate 2 Return (Average Annual Return, 3/2007 - 3/2017) U.S. Treasures Hedge Funds 0 Commodities -8 0 20 25 10 15 Risk (10-Year Standard Deviation) a. Teisa is an investor with a high risk high return investment objective. Briefly outline which 2 asset classes you would recommend for him to consider in his investment portfolio and give the reasons why. (3 marks) b. Briefly outline 2 asset classes that a fixed income fund manager would invest the majority of their portfolio in