Which of the following is true?
a. People who invest in the stock market are virtually certain to make money.
b. Investors in the stock market can reduce their risk if they hold shares of specific stocks for only short periods of time.
c. The risk of stock market investments can be reduced through the holding of a diverse portfolio of unrelated stocks over long periods of time.
d. In the long run, corporate bonds can be expected to yield a higher real rate of return than ownership of stocks.
C
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In general, the purpose of markets is to facilitate the exchange of goods and services between buyers and sellers
a. True b. False Indicate whether the statement is true or false
The relative price of a pineapple today in terms of pineapples tomorrow is given by
a. 1 - r b. r c. 1 + r d. 1/(1 + r)