Which of the Following Provides the Strongest Argument for Young

question 333

Multiple Choice

Which of the following provides the strongest argument for young people making regular payments into a retirement program that invests these funds in a diverse set of stocks?

• A) The prices of stocks tend to fluctuate more than the prices of bonds.
• B) Over short periods of time, variation in the real rate of return of stocks is greater than bonds.
• C) When held over lengthy periods like 30 or 40 years, historically, the rate of return on stocks has been both higher and less variable than that of bonds.
• D) Lower interest rates will lead to higher bond prices.

---

Definitions:

Positive Attitudes

Feelings or opinions that involve a favorable view towards something or tendency to expect good outcomes.

Indifference

A state of neutrality or lack of interest, concern, or emotional investment in a particular issue, outcome, or object.

Language Acquisition

The process by which humans acquire the capacity to perceive, produce, and understand language.

Literacy

The ability to read and write at a level that allows an individual to function and communicate effectively in society.