Why should investors with a short investment horizon invest less money in common stocks?
A) Because the stock market is very volatile and a catastrophic market event can happen at any time.
B) Because the investors won't have enough time available to effectively recover from a loss of their investment principle.
C) Because the transaction costs will negatively affect their returns in the short-term.
D) All of the above are correct.
E) Only A and B are correct.
Answer: E
You might also like to view...
A liquidating dividend is
a. a dividend that exceeds current retained earnings. b. normally declared when a corporation is experiencing large profits. c. a dividend that exceeds current profits. d. legal in most states.
________ are messages that publicly notify an audience of information they need or want to know
A) Announcements B) Confirmations C) Goodwill messages D) Condolences E) Claims
In order to simplify the record-keeping chores of budgeting, you should use cash to pay bills whenever you can
Indicate whether the statement is true or false.
What are the 3 Rs for sustainability?
A) reduce, reuse, and reclaim B) reduce, reproduce, and recycle C) reproduce, reuse, and recycle D) reduce, reuse, and recycle E) reduce, reclaim, and recycle