Which of the following investment types usually has the highest potential returns over the long term?

Stocks typically have the highest potential returns over the long term compared to the other investment types listed. This is largely due to their nature of representing ownership in companies, which can experience significant growth over time as they expand and generate profits. Historically, the stock market has shown a tendency to outperform other investment categories, particularly in the long run, as it capitalizes on the economic growth and profitability of various businesses.

While real estate can also provide substantial returns and bonds generally offer stable income with lower risk, their long-term growth potential does not typically match that of stocks. Cash equivalents, such as savings accounts and treasury bills, are designed for safety and liquidity but yield the lowest returns due to their conservative nature. Therefore, when looking for growth potential, stocks stand out as the optimal choice for those willing to accept higher levels of risk associated with market fluctuations.