ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a greater chance of higher returns.
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smaller dividends.
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greater liquidity.
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a lower level of risk.
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Detailed explanation-1: -In general, stocks are riskier than bonds, simply due to the fact that they offer no guaranteed returns to the investor, unlike bonds, which offer fairly reliable returns through coupon payments.
Detailed explanation-2: -Bonds in general are considered less risky than stocks for several reasons: Bonds carry the promise of their issuer to return the face value of the security to the holder at maturity; stocks have no such promise from their issuer.
Detailed explanation-3: -Some of the safest bonds include savings bonds, Treasury bills, banking instruments, and U.S. Treasury notes. Other safe bonds include stable value funds, money market funds, short-term bond funds, and other high-rated bonds.
Detailed explanation-4: -Stocks and bonds are the two main classes of assets investors use in their portfolios. Stocks offer an ownership stake in a company, while bonds are akin to loans made to a company (a corporate bond) or other organization (like the U.S. Treasury). In general, stocks are considered riskier and more volatile than bonds.
Detailed explanation-5: -U.S. Treasury Bills, Notes and Bonds. Risk level: Very low. Series I Savings Bonds. Risk level: Very low. Treasury Inflation-Protected Securities (TIPS) Risk level: Very low. Fixed Annuities. High-Yield Savings Accounts. Certificates of Deposit (CDs) Money Market Mutual Funds. Investment-Grade Corporate Bonds. More items •08-Feb-2023