Generally speaking, what is the major difference between stocks and bonds? a.You can’t own stocks and...
Generally speaking, what is the major difference between
stocks and bonds?
a.You can’t own stocks and bonds in the same portfolio
b.Bonds are safer and more stable, but offer a lower potential
return than stocks
c.Stocks are usually long term while bonds are usually short term
investments
d.Stocks and bonds are basically identical to investors
Homework Answers
Answer: Option b is correct.
Bonds are safer and more stable as compared to stocks, however
bonds offer a lower potential return than stocks.
a) This statement is not correct. We can own stocks and bonds in
the same portfolio.
c) This statement is not correct. Bonds are not usually meant for
short term investments, retail investors, firms also invest in long
term bonds.
d) This statement is not correct. Stocks and bonds are not
identical.
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