The Historical Record for the Period 1926-2010 Supports Which One

question 49

Multiple Choice

The historical record for the period 1926-2010 supports which one of the following statements?

• A)A higher-risk security will provide a higher rate of return next year than will a lower-risk security.
• B)If you need a stated amount of money next year, your best investment option today for those funds would be long-term government bonds.
• C)Increased long-run potential returns are obtained by lowering risks.
• D)It is possible for small-company stocks to more than double in value in any one given year.
• E)Inflation was positive each year throughout the period of 1926-2010.

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Definitions:

Risk Assumption

The act of taking on the potential for loss or harm as part of a project, investment, or business, often in pursuit of a reward.

Entrepreneur

An individual who creates, launches, and manages a new business, typically taking on significant financial risk.

Controlling

In management, it involves monitoring performance, comparing it with goals, and taking corrective action as needed.

Entrepreneurial Idea

An innovative concept or solution that can be transformed into a viable business opportunity.