Which of the Following Is True of Stocks

question 89

Multiple Choice

Which of the following is true of stocks?

• A) Stock ownership is risky because the investor can never be sure what return they will earn or what the value of their stock holdings will be in the future.
• B) The riskiness of stocks is one reason why their average rate of return has been higher than investments like bonds that guarantee a specified nominal amount in the future.
• C) Both a and b are true.
• D) Neither a nor b is true.

Analyze the legal outcomes related to breaches of express and implied warranties.

Differentiate between express and implied warranties under the Uniform Commercial Code (UCC).

Evaluate the impact of privity of contract on warranty claims.

Identify the measures states have taken to limit punitive damages in product liability lawsuits.

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Definitions:

Average

A statistical measure representing the central or typical value in a set of data, calculated usually as the sum of the values divided by the number of values.

Real Numbers

Real numbers include all the numbers on the number line, encompassing rational and irrational numbers, positive, negative, and zero.

Complex Fraction

A fraction that consists of a fraction within its top or bottom number, or in both.

Simplify

The process of reducing a mathematical expression to its simplest form, by performing operations and combining like terms.