Many Investments Such as Stock Have Common Characteristics Including

question 16

Multiple Choice

Many investments such as stock have common characteristics including
1. existence of secondary markets
2. risk
3. potential for capital gains

• A)1 and 2
• B)1 and 3
• C)2 and 3
• D)all of the above

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Definitions:

Expected Value

The anticipated value or return of a variable, taking into account all possible outcomes and their probabilities.

Income

Money received, especially on a regular basis, for work or through investments.

Insurance

A financial product sold by companies to individuals or entities to protect against financial loss or damage from specified risks.

Probability

The measure of the likelihood that an event will occur, quantified as a number between 0 and 1, where 1 indicates certainty.