13
QuizMultiple Choice

Investing — Test

Question 13 • Personal Finance

Why are stocks often included in long-term portfolios?

Answer
A
They guarantee income.
B
They provide higher growth potential.
C
They eliminate losses.
D
They avoid price changes.

Explanation

Stocks represent ownership in companies, and their prices can rise as those companies grow. This gives stocks higher growth potential over the long term than more conservative investments, though returns are not guaranteed. Stocks do not guarantee income, eliminate losses, or avoid price changes.

AI-written and checked against the verified answer.

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