Question

Question 21 2.5 pts Which of the following statements is false? corporations, unlike proprietorships and partnerships, are subject to double taxation. bond prices will fall when lenders expect higher rates inflation in the future. the stock and bond markets are very efficient. In real life, when an individual expects the economy to expand, he should hold no nominal assets. Question 22 2.5 pts Which of the following statements is true? The relationship between risk and potential reward is inverse. Bond prices and interest rates fluctuate directly. The investment portfolio of younger investors should be heavily weighted toward conservative assets such as government bonds and blue chip stocks. During an economic contraction, bond prices are likely to rise.

Answer 1

21.

The stock and bond markets are very efficient

This statement is false

22.

During an economic contraction, bond prices are likely to rise.