Which of the Following Statements Is True About Common Stocks

question 21

Multiple Choice

Which of the following statements is true about common stocks as investments?

• A) Stocks are among the riskiest of all investments.
• B) Stocks are most suitable for investors who seek security.
• C) Stocks will never become worth less than their purchase price.
• D) Stock prices reflect only government action.
• E) Stock prices are easily manipulated.

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Definitions:

Proportion

A fraction or percentage that represents a part of a whole or a total.

Test

An examination or evaluation conducted to determine the presence, quality, or truth of a specific characteristic, hypothesis, or condition.

Degrees Of Freedom

The number of values in a statistical calculation that are free to vary.

Poisson Distribution

A probability distribution that models the number of times an event occurs in a fixed interval of time or space.