Question

What is the risk and return on stocks, bonds, and mutual funds?

Thanks

Answer 1

Many bonds carry the least risk, but usually the lowest returns. Mutual funds come next since they are usually a little safer than stocks. Stocks tend to be the riskiest, but offer the highest potential returns.

However, each bond, mutual fund or stock varies. Junk bonds, for instance, are riskier than solid blue chip stocks.