Historically, When a Diverse Set of Stocks Is Held Over

question 378

Multiple Choice

Historically, when a diverse set of stocks is held over a lengthy time period, stocks have yielded a ____ rate of return, and the variation in the rate of return has been ____.

• A) low; low
• B) low; high
• C) high; low
• D) high; high

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Definitions:

Straight-Line Depreciation

Straight-line depreciation is a method of evenly distributing the cost of a tangible asset over its useful life.

Income Taxes

Taxes levied on the income of individuals or businesses by the government.

Operating Cash Inflow

Cash generated from the core business operations of a company during a specific period.

Straight-Line Depreciation

An approach to evenly spread the expense of an asset over its period of utility.