Which asset type is typically considered riskier?

Stocks are typically considered the riskiest asset type among the options provided. This categorization stems from their inherent volatility and the potential for price fluctuations based on various factors such as market conditions, economic changes, company performance, and investor sentiment. Unlike bonds, which generally offer fixed income and have a higher claim on assets in the event of bankruptcy, stocks represent ownership in a company and are subject to greater uncertainty and risk of loss.

Real estate, while it can also be risky, often involves longer-term investment horizons and less daily price volatility compared to stocks. Commodities can certainly be volatile and subject to market speculation, but they are generally considered part of a portfolio diversification strategy rather than the primary risk asset. Thus, stocks are viewed as the asset class with the highest potential for both return and loss, leading to their perception as the riskiest option here.