Why Do CDs Have Lower Rates of Return Than Stocks

question 81

Multiple Choice

Why do CDs have lower rates of return than stocks?

• A) CDs are much riskier investments than stocks.
• B) CDs are less risky than stocks.
• C) CDs are not taxed while stocks' returns are taxable.
• D) CDs are not as liquid as stocks.

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Definitions:

Fluid-Mosaic

A model describing the structure of cell membranes, where various proteins float in or on the fluid lipid bilayer like boats on a pond.

Plasma Membrane

The lipid bilayer that forms the outer boundary of a cell, controlling the movement of substances in and out of the cell.

Carrier Proteins

Proteins embedded in the cell membrane responsible for the transport of molecules across the membrane via facilitated diffusion or active transport.

Phospholipids

A class of lipids that are a major component of all cell membranes as they can form lipid bilayers.