For a corporation, issuing bonds is riskier than issuing stock
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
The strength of the demand for a resource depends on the following factors, except
A. supply of the resource. B. demand for the product the resource helps to produce. C. productivity of the resource. D. price of the product the resource helps to produce.
When the government runs a deficit, which of the following is true?
A) G > T + TR B) T < G + TR C) T > TR - G D) G > TR - T
During the most recent recession, many people temporarily lost substantial value in their retirement investment portfolios because most of the assets (including stocks, bonds, and real estate) all declined in value at the same time
In hindsight, what was the problem with these portfolios? A) The portfolios were not adequately diversified because the assets were negatively correlated, so all of the assets had negative returns at the same time. B) The portfolios were not adequately diversified because the assets were more positively correlated than expected, so all of the assets had negative returns at the same time. C) The portfolios were adequately diversified, but the assets should have been more positively correlated to protect against recession risk. D) The investors should not have diversified their investments to protect against recession risk.
Which of the following is a government sponsored enterprise that funds or guarantees a substantial number of mortgage loans in the U.S.?
a. Fannie Mae b. Freddy Mac c. both A and B above d. neither A nor B above