When the Overall Market Experiences a Decline of 8%, an Investor

question 38

Multiple Choice

When the overall market experiences a decline of 8%, an investor with a portfolio of aggressive stocks will probably experience:

• A)negative portfolio returns of less than 8%.
• B)negative portfolio returns of greater than 8%.
• C)positive portfolio returns of less than 8%.
• D)positive portfolio returns of greater than 8%.

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Definitions:

Ratio

An expression that compares two quantities in a specified order.

Fuel Mix

The combination of various fuel sources used to generate energy or power.

Two-Cycle Engine

An internal combustion engine that completes a power cycle with two strokes of the piston during only one crankshaft revolution.

Ratio

A mathematical expression that represents the relationship between two numbers, showing how many times one value contains or is contained within the other.