Which of the Following Statements Is TRUE

question 124

Multiple Choice

Which of the following statements is TRUE?

• A) In the long run, stock returns are higher than bond returns.
• B) Passive investments underperform active investments.
• C) One can earn higher returns by investing in funds with high loading costs.
• D) The efficient markets hypothesis only holds in the short run.

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Definitions:

Cerebellum

A region of the brain that plays a vital role in motor control, and may also be involved in some cognitive functions like attention and language.

Temporal Lobe

A region of the brain responsible for processing auditory information and is involved in speech, memory, and emotions.

Amygdala

A structure in the brain that is involved in emotional processing, especially fear and pleasure.

Memory Consolidation

The process by which short-term memories are integrated and stabilized into long-term storage in the brain.