Which of the Following Statements Is FALSE

question 12

Multiple Choice

Which of the following statements is FALSE?

• A)returns on stocks tend to be highly volatile
• B)a small rise in long-term interest rates can cause a huge drop in stock values
• C)the timing of stock market swings is unpredictable
• D)on average returns on stocks tend to be lower than returns on bonds
• E)the fact that stock market behavior is well understood makes future stock prices hard to predict