Corporate bonds are not as risky as common stocks; as a result, corporate bonds always earn lower returns to investors than do common stock.

Question

Quizplus · Accepted Answer

This statement is not necessarily true. While corporate bonds are generally considered less risky than common stocks, the returns can vary depending on factors such as the creditworthiness of the issuer, interest rates, and market conditions. In some cases, corporate bonds may offer higher returns than some common stocks.

Corporate Bonds Are Not as Risky as Common Stocks; as a Result