The Justification for Holding a Majority of Stocks in a Savings

question 40

Multiple Choice

The justification for holding a majority of stocks in a savings portfolio is because, over the long run,

• A)stocks are highly volatile.
• B)stock returns are constant.
• C)stocks are not as risky as they appear.
• D)bonds are much riskier.

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Definitions:

Travel Expenses

Costs incurred by an employee or a business when travelling for business purposes, which can include accommodations, meals, transportation, and other expenses.

Spending Variance

The difference between the actual amount spent and the budgeted or expected amount, used in budgeting and financial planning.

Cleaning Equipment

Hardware and machinery used specifically for the purpose of cleaning and maintaining cleanliness in various settings.

Flexible Budget

A budget that is conceived to flex with variations in activity scale or volume.