Answer
Makes sense.
Work Step by Step
A person invests in the various portfolio in order to get maximum return on the investment but one should consider the risk factor involved with the certain investment. Investors are the owner of the company by purchasing the shares of ownership which are termed as stock. It helps to get a higher return with respect to the risk of heavy loss of money.
A Bond is issued to raise fund. It is a debt instrument where investor lends money to either corporate or government for a certain period in return of the interest amount at a fixed rate at designed intervals and after maturity, the whole amount of bond paid back to the bondholder. Bonds are less risky than the stock but it has a fixed return.
The given statement makes sense.
