Which Set of Characteristics Should You Prefer in a Stock

question 33

Multiple Choice

Which set of characteristics should you prefer in a stock if you desire the highest (least negative) rate of return assuming that you will earn a negative total return for the period?

• A)High-dividend,high standard deviation
• B)No dividend,high standard deviation
• C)High-dividend,low standard deviation
• D)Low-dividend,high standard deviation
• E)Low-dividend,low standard deviation

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Definitions:

Negotiable Instrument

A written, transferable document signed by the maker or drawer, containing an unconditional promise or order to pay a specified amount of money on demand or at a set time.

Material Alteration

A significant change or modification to a document or item that changes its legal effectiveness or meaning.

Holder In Due Course

A person who has acquired a negotiable instrument in good faith for value and without notice of any defects.

Forged

Refers to the illegal modification or creation of a document, artwork, or signature with the intent to deceive.