Which of the Following Statements Is TRUE

question 28

Multiple Choice

Which of the following statements is TRUE?

• A) Except for tax-exempt investors and tax-deferred accounts, annual tax payments increase investment returns.
• B) The only way to maintain purchasing power over time is to invest in bonds.
• C) After adjusting for taxes, long-term bonds consistently outperform stocks.
• D) An asset allocation decision for a taxable portfolio that does not include a substantial commitment to common stocks may make it difficult for the portfolio to maintain real value over time.
• E) None of these are correct.

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Definitions:

Charter of Rights

A document or legislation specifying the fundamental rights and freedoms guaranteed to citizens, often protected by a nation's constitution.

Free Speech

The right to express opinions without government restraint.

Religious Discrimination

Unfair or unequal treatment of individuals or groups based on their religious beliefs or practices.

Simpsons-Sears

A historical retail chain in Canada, resulting from a partnership between the Canadian department store Simpson's and U.S. retailer Sears.