Investment A guarantees its holder 100 return. Investment B earns ...

[cdr_15]

Investment A guarantees its holder 100 return. Investment B earns 0 or 200 with equal chances (i.e., an average of 100 ) over the same period. Both investments have equal risk.
 
  Indicate whether the statement is true or false

Question 2

Increases in the basic cost of long-term funds or in risk will raise the required return on a bond.
 
  Indicate whether the statement is true or false

[cadimas]

Answer to Question 1

FALSE

Answer to Question 2

TRUE