Question

Why is a high-quality bond typically considered a lower-risk investment than a stock?

A.A bond typically pays a fixed, predictable amount of interest each year.
B.Stocks are stable and do not change often.
C.Bonds are issued by many different entities .
D.Well-established company stocks pay dividends to their investors.

Answer 1

A high-quality bond is typically considered a lower-risk investment than a stock because a bond typically pays a fixed, predictable amount of interest each year.