Which of the Following Are Commonly Thought to Be Good

question 42

Multiple Choice

Which of the following are commonly thought to be good general investment guidelines? I) Don't try to outguess the market, buying and holding generally pays off.
II. Diversify investments to spread risk.
III. Investments should be highly concentrated in your company's stock.
IV. 401K money is best placed in money market accounts because risk is very low.
V. Investments should be allocated to stocks, bonds, and money-market funds.

• A)I, III, and IV
• B)I, II, and V
• C)II, IV, and V
• D)III, IV, and V

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Definitions:

Degrees of Freedom

In statistical analysis, it refers to the number of independent values or quantities which can be assigned to a statistical distribution.

Coefficient of Determination

A statistic that indicates the proportion of the variance in the dependent variable that is predictable from the independent variables.

Total Variation

The overall measure of variability within a dataset, representing the sum of squared differences from the mean.

Coefficient

A numerical or constant quantity placed before and multiplying the variable in an algebraic expression.