Suppose there is an asset class with a standard deviation that lies about halfway between the standard
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The figure indicates that a positive relationship exists between the average returns offered by an asset class and the standard deviation of returns. Average Return (%) 14 12 10 Stocks 8 Source Triumph of the Optimists by Elroy Dimson, Paul Marsh, and Mike Staunton, in Global investment Returns Yearbook 2007 Published by ABN AMRO, London. Updates provided by Dimson, et al. Reprinted with permission. 6 Bonds Bills 4 2 0 0 5 15 20 25 Standard Deviation (%)
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Related Book For
Introduction to Corporate Finance
ISBN: 978-0324657937
2nd edition
Authors: Scott B. Smart, William L Megginson
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