Which of the following is true of stocks?
A) Stock ownership is risky because the investor can never be sure what return they will earn or what the value of their stock holdings will be in the future.
B) The riskiness of stocks is one reason why their average rate of return has been higher than investments like bonds that guarantee a specified nominal amount in the future.
C) Both a and b are true.
D) Neither a nor b is true.
Correct Answer:
Verified
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