Which of the Following Is Not True of Stocks

question 91

Multiple Choice

Which of the following is not true of stocks?

• A)Since the end of World War II,stocks have returned almost 10 percent a year.
• B)Since 1926,stocks had positive gains in 66 years.
• C)Since 1926,stocks lost money in 25 years.
• D)In February 2018,the Dow Jones experienced its worst one-day decline in history.
• E)In reality,stocks do not have a place in every investment portfolio.

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Definitions:

Investments

The action or process of allocating capital or resources to an entity or project with the expectation of obtaining an additional income or profit.

Dollar

The official currency of several countries, including the United States, known for its significant role in international trade and finance.

Depreciate

A decline in an asset's value over time, frequently caused by deterioration or becoming outdated.

Managed Floating

A system where a country's exchange rate is allowed to fluctuate in response to the foreign exchange market, but the central bank intervenes to stabilize the currency when necessary.