Which of the following is true of stocks?
a. Stock ownership is risky because the investor can never be sure what return they will earn or what the value of their stock holdings will be in the future.
b. The riskiness of stocks is one reason why their average rate of return has been higher than investments like bonds that guarantee a specified nominal amount in the future.
c. Both a and b are true.
d. Neither a nor b is true.
C
You might also like to view...
The more we pay for a euro, the __________ European goods are to us and the __________ European assets are to us
A) cheaper; cheaper B) cheaper; more expensive C) more expensive; cheaper D) more expensive; more expensive
In the case of the simple regression model Yi = ?0 + ?1Xi + ui, i = 1, …, n, when X and u are correlated, then
A) the OLS estimator is biased in small samples only. B) OLS and TSLS produce the same estimate. C) X is exogenous. D) the OLS estimator is inconsistent.