Historically, Investment in Stocks Have Been a Prudent Investment

question 12

Multiple Choice

Historically, investment in stocks have been a prudent investment

• A)because stock prices have stayed roughly constant over time.
• B)because stock prices have generally risen over time.
• C)because stocks no longer carry any underlying risk.
• D)because stocks can easily be converted to corporate bonds.

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Definitions:

Reclamation Costs

Expenses associated with the process of restoring land after it has been used or damaged, such as in mining activities.

Natural Resource

Assets that occur in the environment naturally, such as minerals, forests, and water bodies, which can be used for economic benefit.

Depletion

The allocation of the cost of natural resources over their useful life.

Statutory Depletion

A tax deduction allowing an owner to account for the reduction of a product's reserves.