Fin mba managerial finance final
1. Stocks: Historically, stocks have offered the highest returns of any asset class over long-term periods of time. This is due to their ability to take advantage of economic growth and generate higher returns than other investments such as bonds and cash equivalents.
2. Bonds: Bonds typically offer a lower return than stocks, but they also have less risk associated with them compared to stocks. The lower return is attributed to the fact that bond investors are taking on less risk in exchange for more consistent returns over time.
3. Cash Equivalents: Cash equivalents such as money market accounts or certificates of deposit (CDs) generally offer the lowest returns because there is virtually no risk associated with these investments, making them suitable for investors looking for a safe place to store their cash without taking on additional risks from investing in markets like stocks or bonds.