Question

Which of the following statements about length of investment is correct? a. Bonds tend to be better long-term investments than stocks because bonds are unlikely to lose their value. b. Stocks tend to be better long-term investments than bonds because bonds do not have the same growth potential that stocks do. c. Bonds tend to be better long-term investments than stocks because bonds, unlike stocks, are guaranteed to keep up with inflation. d. Stocks tend to be better long-term investments than bonds because stocks can be bought and sold more readily than bonds.

Answer 1

b) Stocks tend to be better long-term investments than bonds because bonds do not have the same growth potential that stocks do.

Answer 2

The second option is the correct choice.

Explanation:

The correct statement is - Stocks tend to be better long-term investments than bonds because bonds do not have the same growth potential that stocks do.

Long term stocks tend to earn more than bonds. Historically also, the stocks have produced higher returns than bonds.