Les says that it is foolish to invest in the stock market because you can lose money.It is much better to simply put your money in a savings account where it is safe.Laura agrees that investing is risky,but says that even relatively low-risk investments will earn more than the low rate of interest that is paid in a savings account.Which of the following assumptions is Laura making?
A) Inflation will be higher than the interest rate paid on a savings account.
B) Any stock will eventually go up in value,given enough time.
C) Riskier investments have more value over a long period of time.
D) If you invest in more stocks,their value will be higher.
E) The stock market will experience net growth over time.
Correct Answer:
Verified
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