Which of the Following Is True of Investments

question 306

Multiple Choice

Which of the following is true of investments?

• 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:

Social Discord

Strife or disagreement within a society, often arising from differences in beliefs, interests, or values, leading to conflict or tension.

Structural Differentiation

The process of dividing an organization into smaller units or departments that specialize in specific tasks or functions.

Unresolved Prior Conflicts

Disagreements or disputes from the past that have not been addressed or resolved, often leading to ongoing tension or issues.