By Diversifying,the Risk of Holding Stock

question 42

Multiple Choice

By diversifying,the risk of holding stock

• A)can be eliminated.On average over the past two centuries stocks paid a higher average real return than bonds.
• B)can be eliminated.On average over the past two centuries stocks paid a lower average real return than bonds.
• C)can be reduced but not eliminated.On average over the past two centuries stocks paid a higher average real return than bonds.
• D)can be reduced but not eliminated.On average over the past two centuries stocks paid a lower average real return than bonds.

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Definitions:

Labor Intensive

A production process or industry that requires a large amount of labor input compared to capital input.

Alternative Technologies

Alternative technologies refer to new or substitute technological solutions that differ from existing methods, often offering improvements in efficiency or sustainability.

Capital Intensive

Describes industries or businesses that require large amounts of capital investments like equipment and machinery relative to labor.

Alternative Technologies

Different or new technologies that can be used as substitutes for existing ones, often considered in the context of improving efficiency or reducing environmental impact.