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Question 17 Gina Davidson has received $35
Question 17 Gina Davidson has received $35.000 in a divorce settlement and is trying to decide how to invest it. She has looked at stocks but is uncertain as some stocks have lost a lot of value for their owners recently. What aspect of investing is she most concerned about? Risk Liquidity ???? Diversification Inflation Investment growth Next
Question 18 2 pts Lindsey Holt owns stock in the Galloway Gems Company. She knows in advance that the dividend on this stock is a $1.50 per share. Given this, you know for sure that she purchased which type of stock? Blue chip Penny Growth Common Preferred
Expert Solution
Question 17
Option a is correct
Gina Davidson is concerned about the RISK aspect of the investment. Her concern is that the stocks have lost a significant amount of value. So, she is afraid to invest in stocks.
Option b is incorrect because stocks have liquidity and her concern is not related to liquidity.
Option c is incorrect because some stocks losing value is not a concern of diversification
Option d is incorrect because stocks losing value is not a concern of inflation
Option e is incorrect because investment growth is not a concern as it is related to risk of losing value.
Question 18
Option e is correct
The dividends of the Preferred stocks are known in advance.
Option a is incorrect because not all blue chip stocks give a dividend
Option b is incorrect because penny stocks may not give dividend
Option c is incorrect because growth stocks may not give dividend
Option d is incorrect because the dividend of the common stock is known only after the announcement from the board, not in advance.
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