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Author Question: Investment A guarantees its holder 100 return. Investment B earns 0 or 200 with equal chances (i.e., ... (Read 175 times)

cdr_15

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on: Jul 11, 2018
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

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Reply #1 on: Jul 11, 2018
Answer to Question 1

FALSE

Answer to Question 2

TRUE


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