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

1 answer:

8 0

Why is a high-quality bond typically considered a lower-risk investment than a stock? A bond typically pays a fixed, predictable amount of interest each year. Since a bond is a fixed income investment it commonly stays more low-risk over a stock. A stock can fluctuate when there are changes in the company they have purchased stocks through has good or bad months on the market.

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• Challenges: Some of the challenges include the lack of political will be engage in more bilateral trade, issues of establishment of Eco currency similar to Euro, issues on balanced trade between countries. And, also, challenges on language barriers among countries and citizens of the various countries.

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