2. Which of the following statements about the stock market is true? a. A bear market is one where stock prices are trending upwards. b. We've been in a bull market for the last 20 years. c. Over time, the stock market averages 6-7% growth per year. d. Stocks are a low-risk short-term investment because trends are predictable. 3. All of the following are risks of owning an individual stocif, EXCEPT a. The stock price could decrease and you could lose money b. Unforeseen developments could cause the of business c. Stock prices are hard to predict in the short-term d. Demand could unexpectedly increase for your company's stock

2. The correct answer is c. Over time, the stock market averages $6-7\% growth per year.<br /><br />Explanation: The stock market has historically provided an average annual return of around 6-7%. This includes both the growth in stock prices and dividends received. Options a, b, and d are incorrect. A bear market is characterized by declining stock prices, not increasing ones. The statement about being in a bull market for the last 20 years may not be accurate as market conditions can change over time. Stocks are generally considered a long-term investment and are not predictable in the short-term.<br /><br />3. The correct answer is d. Demand could unexpectedly increase for your company's stock.<br /><br />Explanation: Owning an individual stock comes with various risks, including the potential for the stock price to decrease, unforeseen developments affecting the business, and the unpredictability of stock prices in the short-term. However, an unexpected increase in demand for a company's stock is not a risk but rather a positive scenario for the investor.