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Discusion of the historical risk and return of various investments

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Discuss the historical risk and return of various investments such as stock and bonds, precious metals and gems, real estate, and artwork in terms of the following:

- Asset return and total risk
- Return and systematic risk
- Return and unsystematic risk

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This solution provides a discussion of the risk and return of various investments including, precious metals and gems, stocks and bonds, real estate, and artwork.

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Hi,

Discuss the historical risk and return of various investments such as stock and bonds, precious metals and gems, real estate, and artwork in terms of the following:
i) Asset return and total risk
ii) Return and systematic risk
iii) Return and unsystematic risk

Different types of investment have different risk and return characteristics over the period of time. If we look at the historic performance, we can find that different types of investments according to a risk/return hierarchy, which reflects that if an investor want greater rewards, he/she may need to accept greater risk.

Stock and bond

Based on the historical performance we can say that equity return is very difficult to predict and this is the reason it is the most risky ...

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Jayant Kumar, MBA
Education
  • MBA, Indian Institute of Finance
  • Bsc, Madras University
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