Which of the following statements are true based on the historical record for 19
ID: 2787717 • Letter: W
Question
Which of the following statements are true based on the historical record for 1926-2013?
Risk-free securities produce a positive real rate of return each year
Bonds are generally a safer investment than are stocks
Risk and potential reward are inversely related
The normal distribution curve for large-company stocks is narrower than the curve for small-company stocks
Which of the following statements are true based on the historical record for 1926-2013?
Risk-free securities produce a positive real rate of return each year
Bonds are generally a safer investment than are stocks
Risk and potential reward are inversely related
The normal distribution curve for large-company stocks is narrower than the curve for small-company stocks
Returns are more predictable over the short term than they are over the long termExplanation / Answer
Correct Option: Bonds are generally a safer investment than are stocks
Other options are incorrect because
Returns are more predictable over the long term than they are over the short term
Risk and potential reward are directly related
The normal distribution curve for small-company stocks is narrower than the curve for large-company stocks
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