The variation in the rate of return one can expect from ownership of stocks will generally be smaller if
a. all of the funds are invested in a specific sector of the economy such as the automobile industry.
b. a diverse set of stocks is held over a lengthy period of time such as 30 or 40 years.
c. all of the funds are invested in a single stock.
d. the funds are invested for a relatively short period of time.
B
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Everything else equal, how will a decrease in the interest rate in Mexico affect Mexico's GDP?
What will be an ideal response?
The theory of portfolio choice suggests that the most important factor affecting the demand for domestic and foreign assets is the ________ on these assets relative to one another
A) interest rate B) risk C) expected return D) liquidity
Why does the government provide public goods?
a) Private markets would not produce the efficient quantity of the good. b) Private markets would not produce any of the good. c) Private markets produce public goods less efficiently than the government. d) Private markets would charge too high a price for the good.
The short-run aggregate supply line is:
A. upward sloping. B. downward sloping. C. horizontal at the current rate of inflation. D. vertical at the economy's potential output.