Which of the Following About Investments Is True

question 124

Multiple Choice

Which of the following about investments is true?

• A) People who invest in the stock market are virtually certain to make money.
• B) Investors in the stock market can reduce their risk if they hold shares of specific stocks for only short periods of time.
• C) The risk of stock market investments can be reduced through the holding of a diverse portfolio of unrelated stocks over long periods of time.
• D) In the long run, corporate bonds can be expected to yield a higher real rate of return than ownership of stocks.

Grasp the concept of motivational interviewing and its effectiveness in encouraging behavior change.

Understand different behavioral finance concepts including biases and heuristics.

Describe the impact of cognitive and emotional biases on investment decision-making.

Identify how financial projections can be affected by behavioral biases.

---

Definitions:

Topic Sentence

A sentence that summarizes the main idea of a paragraph or section, often found at the beginning to provide a clear focus.

Coherence

The logical and orderly presentation of ideas in a text or speech, which enhances understandability and flow.

Transitions

Movements, passages, or changes from one state, condition, subject, place, etc., to another.

Persuasive Writer

A writer skilled in crafting written content that effectively convinces readers to adopt a specific viewpoint or take a particular action.