Which of the Following Is True of Personal Investing

question 11

Multiple Choice

Which of the following is true of personal investing?

• A)Every security investment will generate money.
• B)In general, riskier investment strategies offer the potential for higher returns.
• C)Diversification is a personal investment strategy that increases the expected rate of return and risk.
• D)Individuals who invest in securities must use the services of an investment bank.

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Definitions:

Normal Good

A type of good for which demand increases as the income of consumers increases, and vice versa.

Supply Schedule

A table of numbers showing the amounts of a good or service producers are willing and able to make available for sale at each of a series of possible prices during a specified period of time.

Price-Elasticity

A measure of how the quantity demanded or supplied of a good changes in response to a change in its price.

Price Elasticity

The measure of how much the quantity demanded of a good responds to a change in its price.