Why is a high-quality bond typically considered a lower-risk investment than a stock?

A. A bond typically pays a fixed, predictable amount of interest each year.

B. Stocks are stable and do not change often.

C. Bonds are issued by many different entities.

D. Well-established company stocks pay dividends to their investors.

Question

Business

Sophia Farmer

4 September, 10:50

Why is a high-quality bond typically considered a lower-risk investment than a stock?

A. A bond typically pays a fixed, predictable amount of interest each year.

B. Stocks are stable and do not change often.

C. Bonds are issued by many different entities.

D. Well-established company stocks pay dividends to their investors.

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Sydney Wells · Answer 1

A high-quality bond is typically considered a lower-risk investment than a stock because a bond typically pays a fixed, predictable amount of interest each year.