Which of the following is true with regards to the trade-off between a risk-free investment and a risky investment?
A. There is very little risk in an IPO since returns often exceed 20% in the first day.
B. Mutual funds containing mostly large stocks are more risky than mutual funds containing smaller
stocks.
C. If you prefer less risk, purchase a bond issued by a successful and established firm.
D. There is little risk in purchasing land as an investment since the value of land always appreciates over time.
Answer: C. If you prefer less risk, purchase a bond issued by a successful and established firm.
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Research indicates that individuals who pay a great deal of attention to politics at work and think about them a lot demonstrate:
A) higher performance. B) high levels of stress and lower performance. C) low levels of stress and positive work attitudes. D) low levels of neuroticism.
Who reports the sale to the IRS?
a. Title insurance company b. Escrow c. Real estate agent d. Loan officer