All other factors held constant, an investment:
A. with less risk should sell for a lower price and offer a lower return.
B. with more risk should offer a lower return and sell for a higher price.
C. with less risk should sell for a lower price and offer a higher expected return.
D. with more risk should sell for a lower price and offer a higher expected return.
Answer: D
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Longitudinal data on income inequality in the United States indicates that: a. children of poor families stay poor, but children of rich families do not always stay rich
b. children of poor families often escape poverty, but rich families invariably retain their wealth over time. c. there is substantial movement among income groupings in the United States. d. the rich are getting richer and the poor are getting poorer.
You go to work today, but will get your paycheck at the end of the month. This is an example of money serving as a
A) store of value. B) unit of accounting. C) standard of deferred payment. D) medium of exchange.
At his profit-maximizing level of output, a monopolist’s average total cost curve is tangent to his demand curve. The monopolist
A. is earning a negative economic profit. B. may or may not be earning a negative economic profit. C. is earning zero economic profit. D. is earning a positive economic profit.
A system where goods and services are exchanged directly without a common unit of account is called the:
A) commodity system. B) fiat system. C) barter system. D) none of the above.