Explain Why the Rate of Return from Investing in Stocks

question 57

Essay

Explain why the rate of return from investing in stocks is higher than from investing in bonds.

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Definitions:

Skewed

describes a distribution that is asymmetrical, with a majority of values lying to one side of the mean.

IQR

Stands for Interquartile Range, a measure of statistical dispersion or variability based on dividing a data set into quartiles.

Standard Deviation

This statistic describes the spread of data points in a dataset relative to its mean, indicating how spread out the data is.

Skewed

A description of distribution that shows asymmetry in the sense that the tail is longer on one side than the other.