Asked by Jimmy Christiansen on Jun 09, 2024
Verified
Historically, stocks have offered higher rates of return than bonds.
Rates of Return
The net gain or loss of an investment over a specified time period, expressed as a percentage of the investment’s initial cost.
- Acknowledge trends in mutual fund performance and their implications for investment strategies.
Verified Answer
KP
Kendra Pettiford-FordJun 10, 2024
Final Answer :
True
Explanation :
Historically, stocks have generally provided higher rates of return than bonds due to their higher risk. Stocks represent ownership in a company and can offer unlimited upside potential, whereas bonds are debt instruments that provide fixed interest payments, making them less risky but also offering lower returns.
Learning Objectives
- Acknowledge trends in mutual fund performance and their implications for investment strategies.
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