AAA Company stock has a higher expected rate of return than ZZZ Company stock. All else being equal, you would expect that relative to ZZZ, AAA company stock provides
A) less risk and less liquidity.
B) less risk and more liquidity.
C) more risk and less liquidity.
D) more risk and more liquidity.
C
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Factoring
A) involves selling stocks and using the proceeds to buy bonds. B) is purchasing accounts receivable at a discount. C) is calculating the optimal par values of stocks and bonds. D) has been declared illegal under the Reform Act of 1994.
In a perfectly competitive market, when the price is greater than the minimum average total cost for all firms:
A. positive economic profits are being earned. B. firms will enter, causing the price to increase. C. firms will exit, causing the price to drop. D. None of these is true.
An economy's standard of living grows over the long run because of: a. better protection of domestic industries from foreign competition. b. centralized planning and decision making
c. technological improvements. d. stringent foreign trade policies. e. high growth rate of population.
Gross domestic product that is based on existing prices is called:
a. nominal GDP. b. current GDP. c. money GDP. d. all of these.