Under what circumstances are stocks less risky than bonds?

Question

Quizplus · Accepted Answer

Stocks may be less risky than bonds when they are held for a long period of time, as the long-term performance of the stock market has historically been positive. In contrast, bonds have a fixed rate of return and are more sensitive to changes in interest rates, which can affect their value. However, this does not imply that stocks are always less risky than bonds. The degree of risk associated with stocks versus bonds can vary depending on a number of factors, such as the company's financial health, overall market conditions, and investor behavior.

Under What Circumstances Are Stocks Less Risky Than Bonds