What might you say to someone whose reason for investing in 90% bonds and 10% stocks is that they want a 6% return on investment?

Question

Business

Mila Schneider

21 February, 04:01

What might you say to someone whose reason for investing in 90% bonds and 10% stocks is that they want a 6% return on investment?

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Answers (1)

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Anabella Fry · Answer 1

It is better to invest more of the bonds which will be is safe and and results in a return higher return for investment than compared with stocks

Explanation:

From the question given, the reason for someone to invest in 90% of bonds and 10 % of stock is that they want a good investment of returns of the business.

However, Investing in bonds is more secured than stocks, because bonds bears the interest rate fixed and it it will be less risky than in stocks, in terms of investment.