Government and corporate bonds are often seen as _____ investments than stocks.
Understand the Problem
The question is asking for the appropriate term to fill in the blank regarding the perceived risk level of government and corporate bonds compared to stocks.
Answer
safer
The final answer is safer.
Answer for screen readers
The final answer is safer.
More Information
Bonds are typically seen as safer investments compared to stocks because they usually offer more predictable returns and are less volatile.
Tips
A common mistake is assuming that all bonds are completely risk-free. While bonds are generally safer, they still carry some risks, such as interest rate risk, credit risk, and inflation risk.
Sources
- Understanding bonds: what they are and how to invest in them | Saxo - home.saxo
- Corporate Bonds: Advantages and Disadvantages - Investopedia - investopedia.com
- Bonds | FINRA.org - finra.org
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