If Stocks Are Riskier Than Bonds, Why Would a Rational

question 144

Essay

If stocks are riskier than bonds, why would a rational investor ever buy stocks?

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Definitions:

\(11 !\)

Denotes the factorial of 11, which is the product of all positive integers from 1 to 11, calculated as \(11! = 11 \times 10 \times 9 \times ... \times 1\).

\(6 ^ { n + 2 }\)

An exponential expression representing six raised to the power of n plus two, where n is any real number.

\(- 1\)

Represents a negative unit value in mathematics, often used to indicate the opposite or additive inverse of a positive value.

\(- 1\)

A numeric value that is one less than zero, often representing the inverse of a quantity.