Which of the Following Is Not a True Statement

question 32

Multiple Choice

Which of the following is not a true statement?

• A)When choosing an investment, it is not necessary to consider the risk factor.
• B)During inflationary times, there is a risk that the financial return on an investment will not keep pace with the rate of inflation.
• C)The interest rate risk associated with investments in bonds is the result of changes in the interest rates in the economy.
• D)The risk of business failure is associated with investments in common stock, preferred stock, and corporate bonds.
• E)The price of stocks, bonds, and other investments may fluctuate because of the behavior of investors in the marketplace.