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Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364

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BuyFindarrow_forward

Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364
Textbook Problem

Which has a higher average return over time: stocks, bands, or a savings account? Explain your answer.

To determine

If stocks, bonds, or a saving account has a Higher Average Return over time.

Explanation

Returns are directly related to risk. The greater the risk, the greater is the return. Stocks have the highest average return with highest risk as compared to bonds and savings account. Bonds provide higher return with higher risk than savings account, but lower returns than stocks...

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