Question

1. how does a bond differ from a stock in your investment portfolio?

bonds typically have higher returns and lower risk than stocks
bonds typically have higher returns and higher risk than stocks
bonds typically have lower returns and higher risk than stocks
bonds typically have lower returns and lower risk than stocks

Explanation:

Bonds represent debt issued by an entity, so the issuer is obligated to repay principal plus interest, making them lower risk. Stocks represent ownership in a company, with returns dependent on company performance, which is more volatile, leading to higher potential returns but higher risk. Thus, bonds have lower returns and lower risk compared to stocks.

Answer:

D. Bonds typically have lower returns and lower risk than stocks