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Question
Assume that an investor is offered a choice of a risk-free government bond or a high-risk corporate stock. Further assume that the expected return is the same for both. According to one of the axioms of finance, which investment would be chosen?A) the corporate stock
B) the government bond
C) neither, the investor would be indifferent
D) none of the above
Answer
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Related questions
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C) accounts receivable.
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Dazzly Diamond Corp. called for credit at the Home Alone Bank of Paris, TX. The terms included a $35,000 maximum loan with interest of 1 percent over prime, and the agreement also requires a 15% compensating balance throughout the year. The prime rate is currently 12 percent.
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C) $90,000
D) $94,000