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Over long periods, stock investments have tended to substantially outperform bond investments. However, it is not...

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Finance

Over long periods, stock investments have tended tosubstantially outperform bond investments. However, it is not atall uncommon to observe investors with long horizons holding theirinvestments entirely in bonds. Are such investors irrational? Whyor Why not? Illustrate with real-life examples.

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Ans No it is not true that those who invest in bonds they are irrational investors Every investor has different risktaking abilities Yes over a long period of time stock investments have the tendency to outperform bond investments but it also true that stock investment or equity    See Answer
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Over long periods, stock investments have tended tosubstantially outperform bond investments. However, it is not atall uncommon to observe investors with long horizons holding theirinvestments entirely in bonds. Are such investors irrational? Whyor Why not? Illustrate with real-life examples.

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