Which One of the Following Statements Must Be True

question 84

Multiple Choice

Which one of the following statements must be true?

• A)All securities are projected to have higher rates of return when the economy booms versus when it is normal.
• B)Considering the possible states of the economy emphasizes the fact that multiple outcomes can be realized from an investment.
• C)The highest probability of occurrence must be placed on a normal economy versus either a boom or a recession.
• D)The total of the probabilities of the economic states can vary between zero and 100%.
• E)Various economic states affect a portfolio's expected return but not the expected level of risk.

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The act of committing money or resources to a project, entity, or asset in the expectation of receiving future returns.

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