Stocks with High Returns Are Expected to Have ________

question 86

Multiple Choice

Stocks with high returns are expected to have ________.

• A) high variability
• B) low variability
• C) no relation to variability
• D) inverse relationship with variability

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Definitions:

Fixed Asset

A fixed asset is a long-term tangible piece of property or equipment that a company owns and uses in its operations to generate income. Fixed assets are not expected to be converted into cash in the short term.

Physical

Pertaining to objects, materials, or substances that occupy space and have measurable properties, often contrasted with digital or virtual counterparts.

Cost Basis

Cost basis represents the original value or purchase price of an asset for tax purposes, adjusted for factors like depreciation. It is used to calculate capital gains or losses upon disposal of the asset.

Special Acquisition Fees

Costs incurred during the acquisition of a company or significant assets that are not directly related to the purchase price.