Multiple Choice
Which of the following is true about investments?
A) Most stockholders own stock because they want to run the business.
B) The shareholders of a large well-established firm can be reasonably sure that they will earn a real rate of return of about 7 percent in the future.
C) Ownership of a corporate bond provides the bondholder with an ownership right to a fraction of the firm's future profits.
D) Stock ownership makes it possible for investors to own a fractional share of a firm's future profits even if they do not participate in the operation of the firm.
Correct Answer:
Verified
Correct Answer:
Verified
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