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:

Communications Facilities

Infrastructure and equipment used for the transmission, emission, or reception of signs, signals, writing, images, sounds, or information of any nature by wire, radio, optical, or other electromagnetic systems.

Industrial Plants

Facilities that contain machinery and equipment for manufacturing or processing goods and materials.

Lack of Infrastructure

Refers to the insufficiency or absence of physical and organizational structures and facilities required for the operation of a society or enterprise.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, often measured as the rate of increase in real GDP.