Historically, When a Diverse Set of Stocks Is Held Over

question 378

Multiple Choice

Historically, when a diverse set of stocks is held over a lengthy time period, stocks have yielded a ____ rate of return, and the variation in the rate of return has been ____.

• A) low; low
• B) low; high
• C) high; low
• D) high; high

---

Definitions:

Direct Method

A cash flow statement reporting approach that lists major operating cash receipts and payments, used to show actual cash flows.

Cash Payments

Cash Payments are transactions where monetary value is transferred from one party to another in the form of cash or its equivalent to settle a debt or purchase a good or service.

Positive Cash Effect

The increase in the cash holdings of a business, typically resulting from operational activities, investments, or financing activities that bring in more cash.

Investing Activities

Transactions involving the acquisition or disposal of long-term assets and investments, recorded in the financial statements.