What Is Different About Buying Stocks and Buying Bonds

question 117

Multiple Choice

What is different about buying stocks and buying bonds?

• A)A stock can possibly pay dividends forever,but bonds have a fixed number of payments.
• B)Differences of opinion about a stock's future may vary considerably but there is less difference about a bond's future.
• C)The future growth of a stock is more uncertain than the payments of a bond.
• D)All these are differences between stocks and bonds.

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Definitions:

Dependent Samples T-test

A statistical test used to compare the means of two related groups to determine if there is a statistically significant difference between them.

Two-way ANOVA

A statistical method used to examine the influence of two different categorical independent variables on one continuous dependent variable.

Degrees of Freedom

The total count of distinct values or elements that may be given to a statistical distribution.

Randomized Block Design

An experimental design that groups subjects into blocks to account for variability among them and then randomly assigns treatments within these blocks.