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Chapter 19 Video

1
You invest 6,000 dollars in 1980 in a 401K account. In 2009, the 401K is worth 400,000 dollars. This is an example of:
A)The law of marginal returns
B)The rise and fall of the stock market
C)The ebb and flow of the bond market
D)The law of compounding
E)The law of diminishing returns
2
Which of the following investments could be considered an IOU issued by a company to raise funds to grow?
A)Stocks
B)Mutual funds
C)Bonds
D)Hedge funds
E)None of the above
3
Which of the following is most accurate?
A)Bonds have higher return with lower risk
B)Bonds have lower risk but higher returns
C)Stocks have higher returns and higher risks
D)All of the above are true
E)None of the above are true







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