Which of the Following Is True of Investments

Multiple Choice

Which of the following is true of investments?

A) The stock market helps channel the savings of individuals into business activities that create wealth.
B) Individual investors can reduce their risk by holding a large share of their wealth in the form of the stock ownership of a single company.
C) Historically, the long-term real rate of return of stocks has generally been less than that of bonds.
D) Mutual funds that have done well in the past are more likely to outperform the market average in the future.