The return on an investment in stock:A) is subject to risk but is generally non-negative like a savings account.B) has a standard deviation that has historically been small relative to its average value.C) consists of dividend and capital gains yields.D) is always very risky.

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Karim Ibrahim · Accepted Answer

Final Answer : C, Explanation :  The return on an investment in stock consists of dividend and capital gains yields. Option A is incorrect because the stock market is subject to risk and returns can be negative as opposed to a savings account. Option B is incorrect because the standard deviation of stock returns is typically larger than that of other investments. Option D is incorrect because while stock investments can be risky, they are not always very risky.

The return on an investment in stock:

A) is subject to risk but is generally non-negative like a savings account.
B) has a standard deviation that has historically been small relative to its average value.
C) consists of dividend and capital gains yields.
D) is always very risky.

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