Which of the following statements is true? When you buy an equity, you are promised a stream of fixed dividends. When you buy a bond, you are promised the residual income of that company When you buy an equity, the most you can lose is 100% and your potential gain is unlimited. When you buy an equity, your potential loss is unlimited and your maximum potential gain is 100% Company B Company A pays a dividend of 2%. Company B's stock price increases 1% plus the inflation rate every year. Company C pays 3% dividends, and its stock price decreases every year by 2%. Company D pays 0% dividends, and its stock price does not increase year over year. If the companies are otherwise identical, which would you invest in? Company D Company A Company C