If you are on a limited fixed income, you should not invest in
A) bonds.
B) stocks that pay cash dividends.
C) growth stocks.
D) certificates of deposit.

Question

Quizplus · Accepted Answer

Growth stocks typically do not pay dividends and are considered higher risk because they reinvest earnings into the company for future growth. For someone on a limited fixed income, the volatility and lack of immediate income from dividends make growth stocks a less suitable investment option.

If You Are on a Limited Fixed Income, You Should