Comparing a Low Dividend Yield Portfolio to a Well Diversified

question 24

Multiple Choice

Comparing a low dividend yield portfolio to a well diversified portfolio may provide misleading results because

• A) of the tendency to ignore dividends and interest.
• B) low dividend yield stocks are not traded on the New York Stock Exchange.
• C) low dividend yield stocks have lower risk.
• D) low dividend yield stocks tend to have a smaller percentage price increase.

---

Definitions:

Nuclear Reactor

An apparatus designed to start and regulate a continuous nuclear chain reaction, predominantly for producing electrical power.

Green Chemistry

The design of chemical products and processes that reduce or eliminate the use and generation of hazardous substances.

Drug Industry

A sector of the healthcare industry involved in the discovery, development, manufacturing, and marketing of drugs and therapies.

Pollution Prevention

The practice of reducing or eliminating waste at the source by modifying production processes, promoting the use of non-toxic or less-toxic substances, implementing conservation techniques, and re-using materials rather than putting them into the waste stream.