Are stocks or bonds better investments over:
-A one-year period? Explain your reasoning.
-A five-year period? Explain your reasoning.
-A twenty-five year period? Explain your reasoning.© BrainMass Inc. brainmass.com June 4, 2020, 3:10 am ad1c9bdddf
Financing assets or getting a return depends on the type of assets you are trying to finance and the time frame in which you need your return. Financing assets is typically through debt (loans/bonds) or through equity (stocks) or cash generated from the asset purchased. Therefore, to determine if the stock or bond is a better investment within a one, five, or twenty-five year period simply depends on what asset you are purchasing AND the amount of time you want to receive a return.
In a one-year period, people or companies understand they are investing in a short-term market in which the stocks or bonds ...
This solution explains if stocks or bonds are the better investment over a one-year period, a five-year period, and a twenty-five year period, explaining the reasoning behind each statement.