Question: 1. Given everything else same and stock Ais more risky than stock B, which stock has a higher return? 2. Given everything else same and
1. Given everything else same and stock Ais more risky than stock B, which stock has a higher return? 2. Given everything else same and bond A has longer maturity than bond B, which bond has a higher price? which bond has a higher (bond) yield? 3. There are different types of risks. Can you name one and explain the meaning? (You cannot use reinvestment risk as the answer any more. For example, reinvestment risk: it happens when investment horizon is longer than security maturity. At the end of maturity, investors get all investment/money back and have to re-invest at an uncertain interest rate) HTML Editora A - IX E3
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