Why should a younger investor, saving for the long term, have most of their money in common stocks?
A) Over time, common stocks generate the largest average returns.
B) Investors with lots of time ahead of them have the opportunity to recover from a serious investment set-back.
C) They require the least amount of knowledge, research and expense.
D) All of the above are correct.
E) Only A and B are correct.
Answer: E
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Bond issuers may do something very important for the bondholder that increases the probability the debt will be successfully paid off at maturity. The issuer
A) establishes a sinking fund. B) sets a fixed interest rate. C) has the bond indentured. D) has the bond deferred.
Refer to the information above. At the beginning of October, owners' equity in Waldorf was $480,000. Given the transactions of October, 2014, what will be the owners' equity at the end of the month?
A. $480,000. B. $484,000. C. $502,500. D. $580,500.