Which of the Following About Investments Is True

question 124

Multiple Choice

Which of the following about investments is true?

• A) People who invest in the stock market are virtually certain to make money.
• B) Investors in the stock market can reduce their risk if they hold shares of specific stocks for only short periods of time.
• C) The risk of stock market investments can be reduced through the holding of a diverse portfolio of unrelated stocks over long periods of time.
• D) In the long run, corporate bonds can be expected to yield a higher real rate of return than ownership of stocks.

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Definitions:

Angina Pectoris

A condition marked by severe chest pain due to inadequate blood flow to the heart muscle, often a symptom of coronary artery disease.

Stroke

A medical condition where poor blood flow to the brain results in cell death, causing partial or complete loss of muscle control and, in severe cases, death.

Coronary Artery Disease

A condition characterized by the narrowing or blockage of the coronary arteries, leading to reduced blood flow to the heart muscle.

Hypertension

A medical condition characterized by persistently high blood pressure, which increases the risk of heart, brain, and kidney diseases.