QuestionWhat can Justin expect from his stock investment? A. no loss B. small interest C. high growth & dividends D. 5-year maturity
Studdy Solution
STEP 1
Assumptions1. Justin is making a stock purchase. . The options given are potential outcomes of the stock investment.
STEP 2
We need to evaluate each option and determine which one is most likely to be expected from a stock investment.
Option A no loss of his original investmentWhile this is a possibility, it is not a guaranteed outcome of stock investment. Stocks are subject to market fluctuations and there is always a risk of losing the original investment.
Option B small interest rate paymentsThis is not typically an outcome of stock investments. Interest payments are usually associated with bonds or savings accounts, not stocks.
Option C potential for high growth and dividend paymentsThis is a likely outcome of stock investments. Stocks offer the potential for high growth through price appreciation and also the possibility of dividend payments.
Option D a maturity date of five yearsStocks do not have a maturity date. This is a characteristic of bonds or other types of fixed-income investments.
STEP 3
Based on the evaluation of each option, the most likely expectation from a stock investment is potential for high growth and dividend payments.
So, the answer is C potential for high growth and dividend payments.
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