Long-Term Investments Include

question 3

Multiple Choice

Long-term investments include:

• A)Investments that are not readily convertible to cash or not intended to be converted to cash in the short term.
• B)Investments in marketable stocks that are intended to be converted into cash in the short-term.
• C)Investments in marketable bonds that are intended to be converted into cash in the short-term.
• D)Only investments readily convertible to cash.
• E)Investments intended to be converted to cash within one year.

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Definitions:

Economic Losses

Financial shortfalls that occur when a firm's total costs surpass its total revenues, leading to a negative profit margin.

Positively Correlated

Describes a relationship between events such that each event is more likely to occur if the other event also occurs.

Diversification

Diversification is an investment strategy that involves spreading investments across various assets to reduce risk and increase the potential for returns.

Positively Correlated

A relationship between two variables in which both variables move in the same direction.