Which of the following are advantages of owning bonds?
I. diversification properties
II. higher long-term returns than equity holdings
III. current income
IV. relatively low risk
A) I and II only
B) I, III and IV only
C) I, II and III only
D) I, II, III and IV

Question

Quizplus · Accepted Answer

Owning bonds provide diversification properties, current income, and relatively low risk compared to other investments. However, owning bonds does not typically provide higher long-term returns than equity holdings, making statement II false. Therefore, options A and C are not correct. Option D is correct regarding all advantages, but III and IV properties are enough to determine the best option, B.

Which of the Following Are Advantages of Owning Bonds