5) The diflerence between common and preferred stock is that preferred stock may or may not receive dividends. B) has predictable income and more safety C) has greater potential for capital appreciation. D) is issued more frequenly than common stock 6) Which of the following is true about mutual funds? A) There are very few funds with ditlerent investing objectives. B) C) D) The professional management of the fund consistenty beats the TSX Dividends received from their investments are used to pay the fund's Both dividends and gains are distributed to mutual fund unit holders index returns. expenses 7) The risk-retum relationship means A) the lower the risk, the higher the return B) the higher the risk, the lower the return C) the higher the risk, the higher the return. D) risk and return have little or no correlation. To earn the highest possible return in the stock market, you will need to A) invest in the most well-known stocks B) diversity your portfolio. C) accept a high level of risk. D) buy only the stocks of large, international firms 9) Dividends are a portion of A) earnings shared by the investor B) the equity returned to the investor. C) earnings returned to the company D) cash flow from an income trust 10) You should consider investing in bonds rather than stocks if you A) are willing to take more risk. B) wish to receive income from your investment