Which of the Following Statements Is True with Regard to the Risk

question 90

Multiple Choice

Which of the following statements is true with regard to the risk of investments?

• A) There is very little risk in an IPO since returns often exceed 20% in the first day.
• B) Mutual funds containing mostly large stocks are more risky than mutual funds containing smaller stocks.
• C) If you prefer less risk, purchase a bond issued by a successful and established firm.
• D) There is little risk in purchasing land as an investment since the value of land always appreciates over time.

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Definitions:

Morality

Principles concerning the distinction between right and wrong or good and bad behavior; a system of values and ethics that guide individual or group actions.

Anal Stage

The anal stage is the second stage in Freud's psychosexual development theory, focusing on pleasure derived from controlling bladder and bowel movements.

Psychological Theme

An underlying subject or pervasive pattern that influences an individual's thoughts, emotions, and behaviors, often shaping their worldview and interactions.

Self-Control

The capacity to manage one's feelings, thoughts, and actions when confronted with desires and sudden urges.