Which of the Following Is True

question 433

Multiple Choice

Which of the following is true?

• A) The stock market helps channel the savings of individuals into business activities that create wealth.
• B) Individual investors can reduce their risk by holding a large share of their wealth in the form of the stock ownership of a single company.
• C) Historically, the long-term real rate of return of stocks has generally been less than that of bonds.
• D) Mutual funds that have done well in the past are more likely to outperform the market average in the future.

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Definitions:

Welfare Mothers

A term that refers to women who receive welfare benefits, often used in discussions regarding public assistance programs.

Child Poverty Rate

The proportion of children living in households with an income below a certain threshold, indicating economic hardship.

Sweden

A Nordic country in Northern Europe known for its high standard of living, comprehensive welfare system, and advanced social and economic structures.

Denmark

A country located in Northern Europe, recognized for its high standard of living, robust welfare state, and as the southernmost of the Scandinavian nations.