Question: Why do stocks have value? Because they pay dividends Because we can diversify to minimize risk and stocks could rise in value and generate capital

Why do stocks have value?

Because they pay dividends

Because we can diversify to minimize risk and stocks could rise in value and generate capital gains.

Because history shows that stocks will rise over the long term.

All of these are reasons why stocks have value.

ANSWER B is not corret

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Why do stocks have value? Because they pay dividends Because we can diversify to minimize risk and stocks could rise in value and generate capital gains. Because history shows that stocks will rise...

Q:

Ratio Analysis for ZCL Calculate the current ratio, quick ratio, net working capital, debt-to equity ratio, times-interest earned, financial leverage, asset turnover, Receivables Turnover, Average...

Q:

Ratio Analysis for ZCL Calculate the current ratio, quick ratio, net working capital, debt-to equity ratio, times-interest earned, financial leverage, asset turnover, Receivables Turnover, Average...

Q:

Ratio Analysis for ZCL Calculate the current ratio, quick ratio, net working capital, debt-to equity ratio, times-interest earned, financial leverage, asset turnover, Receivables Turnover, Average...

Q:

1. What is an open-end mutual fund? What types of companies usually manage open-end funds? Describe how these funds work on a day-to-day basis.Part 2An open-end mutual fund:(Select the best answer...

Q:

Chapter 10 A Job at S&S Air Input area: Risk-free rate 10-year return Standard deviation S&P 500 Index fund Small-cap stock fund Large company stock fund Bond fund Output area: Sharpe ratios: S&P 500...

Q:

PORTPOLIO MANAGEMENT CASE I The balance sheet and profit and loss account of GNL Limited for the year 20 x 5 are given below Balance Sheet, GNL Limited (Rs. in million) 20X4 20X5 Liabilities and...

Q:

1. Given that investors can diversify, which of the Stock A has a capital gains yield of 8% and Stock B has a capital gains yield of 13%. 4, following risks is irrelevant? (In other words, which Both...

Q:

You just need to add with latest information from wall street journal news as per question. You need to add the information in the assignments. I have attached four assignments. Also I am attaching...

Q:

Chapter 12:12.3 #4 (p. 305) What kinds of risk are included in investment risk? Go online to survey current or recent financial news. Find and present a specific example of the impact of each type of...

Q:

Write a paper about Design of Data warehousing

Q:

You can think of the workkinetic energy theorem as a second theory of motion, parallel to Newtons laws in describing how outside influences affect the motion of an object. In this problem, solve...

Q:

Which of the following statements about the correlation coefficient is FALSE? A value of zero means that the returns are independent. The correlation values range between - 1 to + 1 . A value of zero...

Q:

Add "Viggo Mortenslet cast = new Map ( ) ;en " to the cast as the key, with value "Aragorn".