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.

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Definitions:

Perceptual Set

A tendency to perceive or notice some aspects of the available sensory data and ignore others, influenced by expectation or prior experience.

Facial Image

A visual representation of a person's face, often used for identification purposes.

Masking Stimulus

A noise or signal used in sensory experiments to interfere with or "mask" the perception of another stimulus, to study sensory thresholds and attention.

Weber's Law

A principle in psychology that states the smallest change in a stimulus that can be detected is a constant proportion of the original stimulus.