Which of the Following Is True

question 637

Multiple Choice

Which of the following 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:

Behavioural Vacillation

The tendency to switch back and forth between different behaviors or opinions, reflecting inconsistency in decision-making or actions.

Conflict

A serious disagreement or argument, typically a protracted one, which can occur between individuals, groups, or nations.

Approach-Avoidance

A psychological conflict that involves being drawn to and repelled by the same object, event, or situation at the same time.

Least Stressful

Describes an environment, situation, or job that induces minimal stress and emotional strain on individuals.