One reason investors may prefer bonds over stocks is
a. potential profits are larger
b. bond prices never vary
c. bondholders get paid before stockholders
d. owning bonds implies owning a part of the company
e. interest rates do not affect the value of bonds
C
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In the theory of consumer choice, when a person is choosing which good or service to consume, how does he or she select the units of good or service to consume? a. The person selects the good or service based on need
b. The person selects the units of a good or service that generates the greatest marginal utility. This process continues until there budget is spent. c. The person selects the units of a good or service that generates the greatest marginal utility per dollar spent. This process continues until the person's budget is spent. d. The person randomly selects what they buy until the budget is spent.
Your mother tells you, "Watching ten hours of TV per day will make you stupid." This is a positive statement because: a. your mother says it with a positive tone in her voice. b. it is your mother's opinion
c. it is a proposition that can be tested. d. your mother is only thinking of your best interest.