When market conditions are strong,which of the following type of investment will likely lead to the highest overall return.
A)Small company stocks
B)Large company stocks
C)High yield bonds
D)A balanced mutual fund

Question

Quizplus · Accepted Answer

Strong market conditions typically benefit smaller companies more as they have higher growth potential and are more flexible in adapting to market changes. This translates to higher returns for investors who choose to invest in these stocks. Large company stocks may also see a boost in such conditions, but smaller companies tend to have more room for growth, which can lead to higher overall returns. High yield bonds and balanced mutual funds may provide lower returns in comparison.

When Market Conditions Are Strong,which of the Following Type of Investment