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

1 answer:

8 0

<span> <span>In investment, the term risk can be defined as the possibility of the investor losing all or part of their capital in a given venture. High quality bonds are considered lower risk because the the investor is promised to receive face value after a certain period unlike stocks that do not carry the same promise. Returns on high quality bonds are also guaranteed in the form of fixed interest rates whereas in stocks, a company may pay dividends but this is not an obligation on their part. Lastly bonds are safer investment as they are less susceptible to abnormal price changes unlike stocks whose prices can easily swing in either direction.</span></span>

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MaRussiya [10]

Answer:

Making decisions and taking actions to achieve a superior fit between the organization and its environment is. strategic management

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a process that uses vision, goals and objectives, internal, and external analysis, and implementation levers that can be used to help formulate and implement strategy.

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DIA [1.3K]

Answer:

$38,500

Explanation:

Sheridan's ending cash balance can be calculated as;

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Alex73 [517]

well... this is a statment not a question so it doesnt really make snce but yes you should research the company

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Buy shares in a mutual fund. Mutual funds pool savings from many individual investors and then
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C. subsidizing: taxing

Explanation:

An activity generates a positive externality if the benefits of economic activities to third parties exceeds its costs.

Example of activities that generate positive externality are education and research.

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An example of negative externality is pollution.

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I hope my answer helps you

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3 years ago