Making a loan is generally:
A) less risky and less potentially rewarding than buying stock.
B) less risky and more potentially rewarding than buying stock.
C) more risky and less potentially rewarding than buying stock.
D) more risky and more potentially rewarding than buying stock.

Question

Quizplus · Accepted Answer

Making a loan is generally considered less risky than buying stock because loans typically have fixed interest payments and a set repayment schedule, whereas stocks can fluctuate in value. However, loans are also less potentially rewarding because they offer limited returns compared to the potential capital gains from stocks.

Making a Loan Is Generally