Dylan and Wyatt are good friends who have similar jobs that pay them well. Both have established budgets that allow them to invest several hundred dollars each month. Dylan has a strategy of putting most of his money in bank CDs and a savings account. Wyatt has opted for a strategy of investing in the stock market. According to the evidence of the past 50 years, it is likely that over the long run
A) Dylan and Wyatt will experience very similar rates of return.
B) Dylan will experience a significantly higher return than Wyatt.
C) Wyatt will experience a significantly higher return on his investments than Dylan, but will also experience more ups and downs over the years.
D) Dylan will experience a slightly higher return, but Wyatt's return will be more stable and predictable.

Question

Quizplus · Accepted Answer

This question asks the student to consider the evidence of the past 50 years. Although it has had its ups and downs, during this period the stock market has proven to provide a more attractive long-run return than other types of investments.

Dylan and Wyatt Are Good Friends Who Have Similar Jobs