Which of the Following Statements Are True Based on the Historical

question 2

Multiple Choice

Which of the following statements are true based on the historical record for 1926-2016?

• A) Risk-free securities produce a positive real rate of return each year.
• B) Bonds are generally a safer, or less risky, investment than are stocks.
• C) Risk and potential reward are inversely related.
• D) The normal distribution curve for large-company stocks is narrower than the curve for small-company stocks.
• E) Returns are more predictable over the short term than they are over the long term.

---

Definitions:

Brands

Symbols, names, or designs that identify and differentiate products or services from those of competitors.

Postpurchase Stage

A phase in the consumer decision process that involves the evaluation of a purchased product and the experience of using it.

Purchase Decision Process

The stages a consumer goes through before, during, and after buying a product, including problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.

Consumer Expectations

The beliefs or standards that customers hold regarding the performance or qualities of products or services they purchase.