Stocks are usually riskier than bonds but also typically earn a higher rate of return than bonds.

Question

Quizplus · Accepted Answer

This statement is generally true. Stocks are usually considered riskier than bonds because their value can fluctuate more dramatically over time. However, they also typically have a higher potential rate of return. Bonds, on the other hand, are usually seen as more conservative investments with lower potential returns.

Stocks Are Usually Riskier Than Bonds but Also Typically Earn