You Have Just Discovered One Reason Not to Invest in Stocks.What

question 136

Multiple Choice

You have just discovered one reason not to invest in stocks.What do you think it is?

• A)Stocks reduce risk through diversification.
• B)Your tolerance of risk is low.
• C)Over time,common stocks outperform all other investments.
• D)Stocks are liquid.
• E)Growth is determined by more than just interest rates.

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting rules and standards issued by the International Accounting Standards Board (IASB) to ensure consistency and transparency in financial reporting globally.

Basic Earnings Per Share

A measure of the amount of a company's profit that can be allocated to one share of its common stock, excluding any complex financial structures.

Payout Ratios

The percentage of earnings paid to shareholders in the form of dividends.