Stocks are better than bonds:
A) in the short run.
B) because stocks have guaranteed returns.
C) in the long run.
D) because bonds are issued only by companies in financial distress.

Question

Quizplus · Accepted Answer

Stocks historically have had higher rates of return than bonds over long periods of time. While stocks may be more volatile in the short term, they have the potential to generate greater returns over the long term. Bonds, on the other hand, generally offer lower returns but are considered less risky and more stable investments. The statement that bonds are only issued by companies in financial distress is false.

Stocks Are Better Than Bonds