Final answer:
The asset that would likely have the highest average return on investment over a 20-year period is shares of stock in social media companies.
Step-by-step explanation:
The asset that would likely have the highest average return on investment over a 20-year period is shares of stock in social media companies. According to the tradeoff between risk and return, stocks generally have higher average returns compared to other assets like government savings bonds, 20-year certificates of deposit (CD), and highly rated bonds issued by major corporations.
Stocks are considered riskier investments, but they also offer the potential for higher returns. This is because stock values can fluctuate significantly over time, and their average return tends to be higher compared to other investment options. While the value of a savings account and bonds may change relatively little, stocks can experience substantial growth or decline.
It's important to note that investing in stocks requires careful consideration and understanding of the risks involved. Investors should assess their risk tolerance, diversify their portfolios, and conduct thorough research before making investment decisions.