Bond Payments Are Generally More Predictable Than Stocks Because

question 128

Multiple Choice

Bond payments are generally more predictable than stocks because

• A) interest on bonds is not taxable.
• B) stock prices and dividends exhibit little volatility.
• C) bonds generate higher average rates of return.
• D) bond owners know the size and timing of payments they will receive.

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Definitions:

Single-Country Funds

Investment funds that target securities from a specific country, offering exposure to that nation’s economic performance.

Mutual Funds

Investment vehicles that pool money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities.

GDP Per Capita

The measure of a country's economic output per person, adjusting for its population size.

Leader

In a financial context, a company, stock, or security that outperforms its peers or the market, often used to indicate trends.