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Which one of the following investments provides the most protection from a severe drop in valual A stocks B bonds C mutual funds D real estate

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Which one of the following investments provides the most protection from a severe drop in valual
A	stocks
B	bonds
C	mutual funds
D	real estate

Which one of the following investments provides the most protection from a severe drop in valual A stocks B bonds C mutual funds D real estate

Solución

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Danielmaestro · Tutor durante 5 años
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B. Bonds<br /><br />Bonds are generally considered to provide the most protection from a severe drop in value compared to stocks, mutual funds, and real estate. This is because bonds are typically less volatile than stocks and mutual funds, and real estate can be subject to significant market fluctuations. Additionally, bonds often have fixed interest rates and maturity dates, which can provide a more stable return compared to the more unpredictable nature of stocks and real estate.
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