The table below illustrates risk and return numbers for different asset classes. Which asset class has the best risk/return trade off among Long Term Bonds, Large Cap Equity and REITs? Explain why.

Annualized CPI Relative Risk-Return Estimates: 1973-2013 Asset Classes Return (%) Std. Deviation (%) Fixed Income 0.9 1.2 Intermediate Term Bond 3.1 4.6 Long Term Bond 4.6 10.1 High Yield Bonds 6.3 8.4 International Government Bonds 4.8 10.5 Commodities 4.8 19.9 Large Cap Equity 6.9 15.7 Mid Cap Equity 9.3 17.7 Small Cap Equity 11.3 21.6 International Equity 5.9 17.6 Emerging Market Equity 12.0 24.1 REITS 19.1 9.0 Source: fi360 Asset Allocation Optimizer: Risk-Return Estimates