Which of the following statements best describes the relationship between stocks and bonds with respect to risk and return?
A) Although bonds are riskier than stocks, bonds have historically earned a higher rate of return.
B) Even though there is a higher expected rate of return with bond ownership relative to stock ownership, there is no guarantee that a higher return will be realized by any given instrument or investor.
C) Although stocks are riskier than bonds, bonds have historically earned a higher rate of return.
D) Other things equal, ownership of stocks involves greater risk and greater expected return than ownership of bonds or other financial assets.
Correct Answer:
Verified
Q35: Other factors equal, which of the following
Q36: Which of the debt instruments below is
Q37: A bond's coupon yield will be equal
Q38: Assume that a particular Treasury security pays
Q39: Assume that a particular Treasury security pays
Q41: If a city wants to raise funds
Q42: If a city wants to raise funds
Q43: Which of the following statements best describes
Q44: Why have Ginnie Mae mortgage-backed securities become
Q45: If a bond sells for $1,050 and
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents