The Advantage of a "Buy-And-Hold Strategy" Is That

question 77

Multiple Choice

The advantage of a "buy-and-hold strategy" is that

• A)net profits will tend to be higher because there will be fewer brokerage commissions.
• B)losses will eventually be eliminated.
• C)the longer a stock is held,the higher will be its price.
• D)profits are guaranteed.

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Definitions:

Supply Curve

A graph showing the relationship between the price of a good and the amount of it that suppliers are willing to produce and sell, under the assumption of other conditions being constant.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good demanded by consumers.

Utility Function

A mathematical model in economics that ranks alternatives based on their utility or satisfaction levels to a consumer.

Price of X

The monetary value or cost assigned to a good or service, labeled as "X" as a placeholder for any specific item.