Based on Recent History,an Investor Would Probably Have a Lower

question 2

Multiple Choice

Based on recent history,an investor would probably have a lower risk level with a portfolio consisting of:

• A)all stocks
• B)all bonds
• C)some stocks and some bonds
• D)Impossible to tell

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Definitions:

Quarterly Payment

Payments made every three months in a year, often used for loans, subscriptions, or service contracts.

Preferred Share

A class of ownership in a corporation that has a higher claim on its assets and earnings than common shares, typically with fixed dividends.

Compounded

The process where the value of an investment increases due to the interest earned on both the principal and the accumulated interest.

Semi-annually

refers to occurrences that happen twice a year.