Owning Only Stocks Is Riskier Than Owning Both Stocks and Bonds

question 154

True/False

Owning only stocks is riskier than owning both stocks and bonds.

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Definitions:

Residual Income

Operating income that exceeds a set minimum return on operating assets, used as a measure of the profitability and performance of a business unit.

Division

A segment within an organization that focuses on specific products, services, territories, or customers, usually with its own set of management and financial goals.

Division's Margin

The profit margin measured at the divisional level, reflecting the division's ability to generate profit from its revenues.

ROI

Return on investment (ROI) measures the gain or loss generated on an investment relative to the amount of money invested.