Question

Select the correct answer.

Which statement comparing short- and long-term investments is true?

A.
Both offer a high degree of liquidity.
B.
Both have a minimum maturity period of five years.
C.
Both include stocks, bonds, and cash.
D.
Both have the same risk level and potential of returns.

Answer 1

Answer: C

Step-by-step explanation: plato

Answer 2

The answer is C, both include stocks, bonds, and cash.

Explanation:

Plato says some similarities between long-term and short-term investments include:

• Stocks, bonds, and cash are involved in both types of investments.
• Investors incur gains and losses on both.
• Investors incur fees and other expenses on both types of investments. Common fees include broker trading fees, commissions, and taxes.

Plus, I just took the test on Plato and got this correct. I hope this helps!