Which of the Following Statements Is True

question 13

Multiple Choice

Which of the following statements is true?

• A) Except for tax-exempt investors and tax-deferred accounts, annual tax payments increase investment returns.
• B) The only way to maintain purchasing power over time is to invest in bonds.
• C) After adjusting for taxes, long-term bonds consistently outperform stocks.
• D) An asset allocation decision for a taxable portfolio that does not include a substantial commitment to common stocks may make it difficult for the portfolio to maintain real value over time.
• E) None of the above

---

Definitions:

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature.

Hypothesis

A supposition or proposed explanation made on the basis of limited evidence as a starting point for further investigation.

Prediction

The act of forecasting or estimating a future event based on current knowledge or analysis.

Theory

A systematic, coherent, and logical set of ideas about a particular topic or phenomenon that serves to organize and explain data and generate new knowledge.