Which of the following statements is true?
a. Bonds have more risk than stocks, but offer more return.
b. Stocks have more risk than bonds, but offer more return.
c. Stocks tend to offer a greater risk, while bonds tend to offer a greater return.
d. Bonds tend to offer a greater risk, while bonds tend to offer a greater return.

The true statement is that stocks have more risk than bonds but offer greater potential returns. Stocks fluctuate more in price, whereas bonds provide fixed interest payments and are less volatile. Investors often use a mix of both for balanced portfolios. ;

Answered by GinnyAnswer | 2025-07-03

The correct statement is that stocks have more risk than bonds but offer greater potential returns. Stocks can fluctuate significantly in price, while bonds provide more stable income with fixed interest payments. This distinction helps investors decide how to construct their investment portfolios.
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Answered by Anonymous | 2025-07-04