Risk pooling is based on the a. law of averages. b. historical averages. C. normal distribution of risk. d. law of large numbers. Municipal bonds are bonds issued by: a state or local governments b. the Federal Government c. private companies d. public corporations Which of the following is true about stock dividends? a. all public companies have to pay dividends according to the SEC b. dividends can be paid in the form of cash or additional stocks C. you do not have to pay taxes on income earned from dividends d. the dividend yield is constant for as long as you own a stock