All of the following securities are sold in money markets EXCEPT
A) commercial paper. B) 3-month U.S. Treasury bills.
C) 6-month certificates of deposit. D) common stock.
Question 2
Joe, a risk-averse investor, is trying to choose between investment A and investment B. If
investment A is riskier than investment B and Joe selects investment A anyway, then
A) the expected return for investment A will be higher than the expected return for investment B.
B) the actual return for investment A will be higher than the actual return for investment B.
C) the expected return for investment A will be higher than the actual return for investment B.
D) the actual return for investment A will be higher than the expected return for investment B.
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