Question

11. As an investor, when you choose to purchase bond instead of a stock, you are likely to receive a ______ return, in exchange for a _____ level of risk.

a.) Higher; higher

b.) Lower; lower

c.) Lower; higher

d.) Higher; lower

"option (c) is NOT correct"

Answer 1

b.) Lower; lower

(Bonds have lower risk and thereby they have lower returns whereas stocks have high risk and thus have high returns.)