Which of the Following Are Commonly Thought to Be Bad

question 60

Multiple Choice

Which of the following are commonly thought to be bad general investment guidelines?I) Don't try to outguess the market, buying and holding generally pays off.II) Diversify investments to spread risk.III) Investments should be highly concentrated in your company's stock.IV) 401K money is best placed in money market accounts because risk is very low.V) Investments should be allocated to stocks, bonds, and money-market funds.

• A) I, III, and IV
• B) I, II, and IV
• C) II, IV, and V
• D) III and IV
• E) I, II, IV, and V

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Definitions:

Reverse

To change direction, position, or course of action to the opposite; in legal contexts, it may refer to overturning a decision in an appellate court.

Trial Court

The first level of court in the judicial system where cases are initially filed and adjudicated.

Prejudicial Error

An error that occurs during a trial, which affects the outcome of the case and may lead to the reversal of the trial court's decision on appeal.

Default Judgment

A binding judgment in favor of either party based on some failure to take action by the other party, often because the defendant does not respond to a summons.