Which of the Following Statements Is True

question 28

Multiple Choice

Which of the following statements is true?

• A)When an investor diversifies his investments, the total risk involved reduces.
• B)Dividends paid on stocks are legally not liable to attract taxes.
• C)When a company increases its retained earnings, the dividends paid by it increases.
• D)As a company increases its retained earnings, the stock price of the company is expected to reduce.

Determine the relationship between stock dividends, market price, and returns.

Understand the role of stockholders in corporate governance and decision-making.

Recognize how total return on stocks is realized through dividend yields and price appreciation.

Understand the concept and characteristics of intelligence tests including reliability and validity.

---

Definitions:

Drug Interaction

A situation in which a substance affects the activity of a drug when both are administered together, either increasing or decreasing the drug's effect.

Delirium

A serious disturbance in mental abilities that results in confused thinking and reduced awareness of the environment.

Working Memory

The cognitive system responsible for temporarily holding and manipulating information in the mind for tasks such as reasoning and comprehension.

Response Inhibition

The cognitive process involved in the ability to suppress actions that are inappropriate or no longer required by a given context.