Each of the following statements is dangerous or misleading. Explain why. a. A long-term United States government

Question:

Each of the following statements is dangerous or misleading. Explain why.

a. A long-term United States government bond is always absolutely safe.

b. All investors should prefer stocks to bonds because stocks offer higher long-run rates of return.

c. The best practical forecast of future rates of return on the stock market is a 5- or 10- year average of historical returns.

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...