Compared to stocks,bonds offer the holder
A)lower risk and lower potential return.
B)lower risk and higher potential return.
C)higher risk and lower potential return.
D)higher risk and higher potential return.

Question

Quizplus · Accepted Answer

Bonds are generally considered to be a lower-risk investment compared to stocks. This is because bonds represent a loan to a company or government, and they typically have a set maturity date and interest rate. However, this lower risk also means that there is a lower potential return compared to stocks, which carry greater risk but also the potential for higher returns.

Compared to Stocks,bonds Offer the Holder