Question

In: Finance

Which of the following statements is (are) true: I : Data over a long period of...

Which of the following statements is (are) true:

I : Data over a long period of time suggest that the less risk one takes, the greater the return one gets from investing.

II: Stocks are less riskier than bonds.

Group of answer choices

A. Statement I is true; Statement II is false

B. Statement I is false; Statement II is true

C. Both statements are true

D. Both statements are false

Solutions

Expert Solution

Option D is correct:

Both statements are false

I : Data over a long period of time suggest that the less risk one takes, the less the return one gets from investing and vice versa.

Example: Bonds are less riskier than stocks and historically they have returned less than the stocks.

II: Stocks are more riskier than bonds as stockholders do not get a regular fixed payments as bondholders get.

jeff jeffy answered 2 years ago
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