Which of the following provides the strongest argument for young people making regular payments into a retirement program that invests these funds in a diverse set of stocks?
A) The prices of stocks tend to fluctuate more than the prices of bonds.
B) Over short periods of time, variation in the real rate of return of stocks is greater than bonds.
C) When held over lengthy periods like 30 or 40 years, historically, the rate of return on stocks has been both higher and less variable than that of bonds.
D) Lower interest rates will lead to higher bond prices.

Question

Quizplus · Accepted Answer

Historically, stocks have provided higher returns over long periods, and their variability decreases over time, making them a strong choice for long-term retirement investments.

Which of the Following Provides the Strongest Argument for Young