Which of the Following Is True About Investments

question 282

Multiple Choice

Which of the following is true about investments?

• A) Most stockholders own stock because they want to run the business.
• B) The shareholders of a large well-established firm can be reasonably sure that they will earn a real rate of return of about 7 percent in the future.
• C) Ownership of a corporate bond provides the bondholder with an ownership right to a fraction of the firm's future profits.
• D) Stock ownership makes it possible for investors to own a fractional share of a firm's future profits even if they do not participate in the operation of the firm.

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Definitions:

Self-efficacy

The belief in one's capabilities to organize and execute the courses of action required to manage prospective situations.

Low Standards

Refers to minimal or inferior criteria or expectations in various contexts, including personal, professional, or quality expectations.

Defensive Pessimism

A strategy where an individual lowers their expectations to help prepare for the worst-case scenario.

Counterproductive

Activities or behaviors that hinder or go against the achievement of one's goals or objectives.