Discuss Whether the Following Statement Is True or False

question 29

True/False

Discuss whether the following statement is true or false:
It is possible for a stock to have an expected rate of return that is negative.

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Definitions:

Normative Statements

Claims that attempt to prescribe how the world should be.

Normative Statements

Claims that express judgments about what ought to be, incorporating opinions and values rather than factual assertions.

Positive Statements

Factual statements about the world that can be tested and validated; they describe "what is" rather than "what ought to be."

Normative Statement

An opinion or judgment that reflects what one believes ought to be, as opposed to what actually is; it cannot be proven true or false.