Equity is historically:
A)safer than debt.
B)risker than debt.
C)risk averse.
D)safer than other investments.

Question

Quizplus · Accepted Answer

Historically, equity investments have been riskier than debt investments. This is because equity represents ownership in a company and is subject to the ups and downs of the company's performance, whereas debt represents a fixed obligation that must be paid back regardless of the company's performance. However, equity also has the potential for higher returns than debt in the long run.

Equity Is Historically