Question

Carla has $10,000 that she would like to save for retirement. If she wants to earn a _____ long-term rate of return, then she will likely choose to put her money into _______. Carla also knows that stock prices ______ a lot over time; therefore, if she prefers to avoid ______, then she will probably choose to purchase ______ but will likely earn less ______.

Answer 1

Carla has $10,000 that she would like to save for retirement. If she wants to earn a higher or greater long-term rate of return, then she will likely choose to put her money into corporations' stocks. Carla also knows that stock prices may vary or fluctuate a lot over time; therefore, if she prefers to avoid financial risk, then she will probably choose to purchase corporations' bonds or government treasury bonds but will likely earn less interest or smaller rate of return.