Q:

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.

Accepted Solution

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