Mary Jo is deciding if she should buy a company's stock or bonds. Since her personal risk tolerance is low, which fact would have the most impact on her decision?
Select the best answer from the choices provided. Bonds are less likely than stocks to lose principal and therefore are a better fit for Mary Jo. Stocks have larger annual returns than bonds and therefore are a better fit for Mary Jo. Stockholders are paid before bondholders, which makes investing in stocks a better fit for Mary Jo. Stocks are less likely than bonds to lose principal and therefore are a better fit for Mary Jo.
@zaibali.qasmi
option A..
@zaibali.qasmi IS it saying bonds lose principal or stocks lose principal?
stock..
yeh bonds only lose principal when it goes bankrupt
yes..
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