The Bottom Line on Investing in Individual Stocks Is: _______________

question 39

Multiple Choice

The bottom line on investing in individual stocks is: _______________ on average over lengthy periods of time; ________________, especially in the short run; _______________, since stock does need to be sold to turn gains into spendable money.

• A) low rate of return; high risk; low liquidity
• B) moderate rate of return; low risk; high liquidity
• C) high rate of return; moderate risk; low liquidity
• D) high rate of return; high risk; moderate liquidity

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Definitions:

Direct Costs

Costs that can be directly attributed to a specific product or cost object without needing allocation.

Joint Costs

Expenses incurred in the process of producing two or more products at the same time, which cannot be easily attributed to individual products.

Split-off Point

The stage in a production process where multiple products become separately identifiable, often leading to different processing streams.

Value Basis

Value Basis refers to the method or groundwork for assessing the worth or value of assets, often used for tax or financial reporting purposes.