Answered

Find the information you're looking for at Westonci.ca, the trusted Q&A platform with a community of knowledgeable experts. Get detailed and accurate answers to your questions from a community of experts on our comprehensive Q&A platform. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.

Select the correct answer.

Which statement comparing short- and long-term investments is true?

A. Both offer a high degree of liquidity.
B. Both have a minimum maturity period of five years.
C. Both include stocks, bonds, and cash.
D. Both have the same risk level and potential of returns.

Sagot :

GinnyAnswer

Final answer:

Short-term investments offer higher liquidity and lower risks compared to long-term investments.


Explanation:

Short-term investments typically have a lower maturity period, providing quicker access to funds compared to long-term investments which require a longer commitment period.

Short-term investments usually offer higher liquidity since they can be easily converted to cash, while long-term investments may have restrictions on accessing funds before maturity.

Risks and potential returns associated with short-term investments are generally lower compared to long-term investments due to the shorter time horizon.


Learn more about Investment comparison here:

https://brainly.com/question/28168293


Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.