Nate has recently graduated from college and started his first full-time job. Although his retirement is many decades away, he wants to start investing in it early. Which investment option would he most likely choose if he wants to take more risk for the greatest possible return?

Question

Quizplus · Accepted Answer

A share of stock represents proportionate ownership interest in a business. Stockholders are thus exposed to all the risks that impact the business environment-interest rates, competition from other firms, input and output price risk, and others. In return for being willing to bear this risk, shareholders may receive dividends and/or capital appreciation in the value of their share(s). In any given year, stocks may fare better or worse than other investments, but there is substantial evidence that for long holding periods (20-plus years) stocks tend to outperform other investment choices.

Nate Has Recently Graduated from College and Started His First