Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. over long periods, stock investments have tended t

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

90.2K

Verified Solution

Question

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.

Answer & Explanation Solved by verified expert
4.1 Ratings (841 Votes)
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
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

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.

Other questions asked by students

Q

There were 2 468 427 deaths in a country in a certain year They are...

Basic Math
Q

Find volume of D enclosed by surfaces z = x² + 3y² and z = 8...

Basic Math
Q

sodium bicarbonate 10 g sodium carbonate 12.72 g, add-50 ml of deionized water to the beaker...

Chemistry
Q

1 A spherical raindrop of initial mass Mo and initial radius R falls freely from...

Physics
Q

MATH 1530 Chapter 8 Practice Worksheet 3

Basic Math
Q

37 of the 192 az 3 r a1 O 108 129 O 142 136 O...

Algebra
Q

Lockard Company compr maquinaria el 1 de enero de 2017 por $80,000. Se estima que...

Accounting
Q

The materials are the property of the instructor and should not be shared or modified...

Accounting
Q

just like maple syrup tell me some another company with same question rest

Accounting
Q

Saved He The records of Diskount Department Stores Inc. provided the following data for 20x5:...

Accounting
Q

Microhard has issued a bond with the following characteristics: Par: $1,000 Time to maturity: 22...

Finance
Q

43. Exit, Inc. is evaluating five projects with the following IRRs: Projects X and Y...

Finance