ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Between cash, stocks, and bonds, bonds are typically considered the riskiest.
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Stocks are the riskiest investments out there.
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Putting money into a savings account with interest is the ideal way for a young adult to invest.
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Historically, stocks have had far greater annual returns than cash, government bonds, and savings
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Detailed explanation-1: -You can earn interest by putting money in a savings account, but savings accounts generally earn a lower return than investments.
Detailed explanation-2: -Key Takeaways The U.S. stock market is considered to offer the highest investment returns over time.
Detailed explanation-3: -Stocks have historically delivered higher returns than bonds because there is a greater risk that, if the company fails, all of the stockholders’ investment will be lost (unlike bondholders who might recoup fully or partially the principal of their lending).
Detailed explanation-4: -Which of the following statements are true about the relationship between risk and return when it comes to investing? When it comes to investing, risk and return have a direct relationship, in that the riskier an investment, the higher its expected return.