Question

Why does stock have more potential for higher returns than bonds?

Answer 1

Stocks have historically delivered higher returns than bonds because there is a greater risk that, if the company fails, all of the stockholders' investment will be lost.

Explanation:

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Answer 2

Stocks have historically delivered higher returns than bonds because there is a greater risk that, if the company fails, all of the stockholders' investments will be lost. However, a stock's price will also rise in spite of this risk when the company performs well, and can even work in the investor's favor.

Explanation: