Which Statement Is TRUE

question 237

Multiple Choice

Which statement is TRUE?

• A) In the long run, stock returns are higher than bond returns.
• B) Passive investments underperform active investments.
• C) One can earn higher returns by investing in funds with high loading costs.
• D) The efficient markets hypothesis only holds in the short run.

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Definitions:

Balance Sheet

A balance sheet is a financial statement that showcases an organization's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

U.S. Dollars

The official currency of the United States, widely used as a benchmark and standard for international financial transactions.

Translation Adjustment

An accounting entry that arises when converting financial statements of foreign subsidiaries into the parent company's reporting currency, affecting comprehensive income.

Functional Currency

The currency of the primary economic environment in which an entity operates, generally the currency in which it primarily generates and expends cash.