When the Overall Market Experiences a Decline of 8%, an Investor

question 38

Multiple Choice

When the overall market experiences a decline of 8%, an investor with a portfolio of aggressive stocks will probably experience:

• A)negative portfolio returns of less than 8%.
• B)negative portfolio returns of greater than 8%.
• C)positive portfolio returns of less than 8%.
• D)positive portfolio returns of greater than 8%.

---

Definitions:

Classifying

The process of systematically arranging business transactions or financial statements' components into categorized groups for analysis and reporting.

Bookkeeping

The recording function of the accounting process.

Accounting

A system that measures the business’s activities in financial terms, provides written reports and financial statements about those activities, and communicates these reports to decision makers and others.

Investors

Individuals or institutions that commit capital with the expectation of receiving financial returns.