Which of the Following Statements Is False

question 39

Multiple Choice

Which of the following statements is false?

• A) The Dow Jones Industrial Average went down by 40 percent during the decade of the 1930s.
• B) Based on data from the period between 1926 and 2004,the probability of having a positive return on an investment in the stocks contained in the Dow Jones Industrial Average would have been 97.1 percent if the stocks had been held for 10 years.
• C) When reading the stock market page of a newspaper,if the column marked "Div." is blank,it means that the company does not currently pay out dividends.
• D) A stock that yields 4 percent is better than a stock that yields 5 percent,all else being the same.

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Definitions:

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in its price, indicating the sensitivity of consumers to price changes.

Advertisers

Entities that promote goods, services, or ideas through various media to persuade potential customers to respond or buy.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over another, reflecting a preference based on perception of the brand's value.

Elastic

Describes a situation in economics where the quantity demanded or supplied of a good changes significantly in response to a change in price.