Which of the following is not true of stocks?
A)Since the end of World War II, stocks have returned on average close to 10 percent a year.
B)Since 1926, stocks had positive gains in 65 years.
C)Since 1926, stocks lost money in 25 years.
D)In 2009, during the economic crisis, stocks lost 37 percent.
E)In reality, stocks do not have a place in every investment portfolio.

Question

Quizplus · Accepted Answer

While it is true that A, B, C, and D are all true statements about stocks, E is the only statement that is not universally true. While many financial advisors recommend adding stocks to an investment portfolio for their potential for high returns, there are some investors who prefer not to include stocks due to their volatility and risk. Therefore, it is not true that stocks have a place in every investment portfolio.

Which of the Following Is Not True of Stocks