You are choosing whether to purchase a bond or stock. If you purchase the bond, you are likely to receive a _____ return in exchange for a _____ level of risk.

Question

Quizplus · Accepted Answer

Bonds typically offer lower returns compared to stocks, but they also come with lower risk. This is because bonds are debt investments where the issuer is obligated to pay back the principal plus interest, making them generally safer than stocks, which are equity investments and can fluctuate more in value.

You Are Choosing Whether to Purchase a Bond or Stock