Question: Using data in the text, rank the following asset classes from lowest to highest average annual return over the period 1926 to 2013: Small stocks

Using data in the text, rank the following asset classes from lowest to highest average annual return over the period 1926 to 2013:

Small stocks

Long-term bonds

Large stocks

T-Bills

Why would you expect the relative returns to be ordered in this way? How would you expect these assets to be ranked by a standard risk measure?

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