Why should investors with a short investment horizon invest less money in common stocks?
A) Because the stock market is very volatile and a catastrophic market event can happen at any time.
B) Because the investors won't have enough time available to effectively recover from a loss of their investment principle.
C) Because the transaction costs will negatively affect their returns in the short-term.
D) All of the above are correct.
E) Only A and B are correct.
Answer: E
You might also like to view...
A price elasticity of demand of 2 means that a 10 percent increase in price will result in a:
a) 20 percent increase in quantity demanded. b) 2 percent decrease in quantity demanded. c) 5 percent decrease in quantity demanded. d) 2 percent increase in quantity demanded. e) 20 percent decrease in quantity demanded.
Give an example of a service that offers access to physical environments as a form of rental
What will be an ideal response?