Short Answer

Long-Term Investment Growth Comparison

Two investors, Investor A and Investor B, each invest $10,000 for 30 years. Investor A puts their money into assets that historically yield an average real return of about 1% per year. Investor B invests in a portfolio of equities that historically yields an average real return of about 9% per year. Without considering risk or price fluctuations, analyze the expected difference in the growth of their investments over the 30-year period. Explain why this significant difference occurs.

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Updated 2025-08-14

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