Question

Comparing home ownership and stock ownership over time,

Choose:

home ownership provides a higher financial return, on average, but stock ownership provides a share of company ownership.

• stock ownership provides a higher financial return, on average, but the home also provides a place to live.

• stock ownership provides a higher financial return, on average, but home ownership is risk-free.

• home ownership provides a higher financial return, on average, but stock ownership is adjusted for inflation.

Answer 1

Option A is correct home ownership provides a higher financial return, on average, but stock ownership provides a share of company ownership.

Because a value of a house will always increase in future which means the house prices are adjusted for inflation in economy thus resulting in higher financial return but stocks which provide company ownership do not get adjusted with inflation and stock price is dependent on the performance of the company which might not provide higher financial return

Remaining options are incorrect