Concerning an investment project which of the following is TRUE?
A) A risk-neutral individual is more likely to invest than a risk-averse individual.
B) A risk-neutral individual is more likely to invest than a risk-loving individual.
C) A risk-neutral individual is less likely to invest than a risk-averse individual.
D) Not enough information is given.
Question 2
Which of the following statements is CORRECT?
A) Compared to stocks, bonds have a higher return.
B) Compared to stocks, bond returns have a higher standard deviation.
C) Compared to bonds, stock returns have a lower standard deviation.
D) Compared to bonds, stock returns have a higher standard deviation.
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