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Decide Whether the Statement Makes Sense

Question 39

Essay

Decide whether the statement makes sense. Explain your reasoning.
-I am young and I'm going to invest my money for at least 6 years. I am going to put all my
money into stocks. The return is higher than for other investments and over such a time
period, there is no risk of losing any of the principal. Historically there has never been a
6-year period in which the Dow ended lower than it started.

Correct Answer:

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No, the statement does not make sense. H...

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