Which of the following is true of stocks?
a. Stock ownership is risky because the investor can never be sure what return they will earn or what the value of their stock holdings will be in the future.
b. The riskiness of stocks is one reason why their average rate of return has been higher than investments like bonds that guarantee a specified nominal amount in the future.
c. Both a and b are true.
d. Neither a nor b is true.
C
You might also like to view...
Define price discrimination. What factors must be present in order for a monopolist to price discriminate? Why do firms price discriminate?
What will be an ideal response?
A good that is most likely to be in the producer price index is:
A. gasoline. B. apples. C. books. D. None of these would be in the PPI.
Suppose the economy is self-regulating, the price level is 120, the quantity demanded of Real GDP and the quantity supplied of Real GDP in the short run both equal $5.7 trillion, and the quantity supplied of Real GDP in the long run is $5.2 trillion. Given all of this information, we can conclude that the economy ____________ in short run equilibrium, and that the price level in long run
equilibrium will be _____________ than 120. A) is not; less B) is; greater C) is; less D) is not; greater
There is a technological advance in the production of digital watches. This will cause:
A. demand to increase. B. supply to increase. C. the price to increase. D. supply to decrease.