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Question
this is a share in a publicly - traded company. the stock price and dividends fluctuate based on the companys performance. is this a variable investment, and why or why not? yes, because it offers fixed returns. no, because it is risk - free. yes, because the returns depend on market performance. no, because the principal is guaranteed.
Stocks of publicly - traded companies have variable returns as stock prices and dividends fluctuate based on market performance and company - specific factors. Fixed returns are characteristic of instruments like bonds in some cases, and stocks are not risk - free nor do they have guaranteed principal.
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Yes, because the returns depend on market performance.