Stocks are considered less risky than bonds, because______________.
a. companies need to have earnings to stay in business.
b. more risky than bonds, because stock prices and profits are highly variable.
c. almost risk-free, since companies need to have earnings to stay in business.
d. less risky than bonds, because stock prices and profits are not highly variable.

Respuesta :

Answer:

b. more risky than bonds, because stock prices and profits are highly variable.

Explanation:

Stocks refer to share of a company that gives part ownership on it and bonds are an instrument in which the investors lend money to the issuer who is committed to pay the money and the interests. Stocks are considered more risky than bonds, because stocks tend to fluctuate more. Also, bonds promise to return the money paid for them and a fixed interest rate which stocks don't promise. Because of this, the answer is that stocks are more risky than bonds, because stock prices and profits are highly variable.