If lenders anticipate no changes in liquidity, information costs, and tax differences, the yield on a risky security should be
A) greater than that on a safe security and the price of a risky security should also be greater than that of a safe security.
B) less than that on a safe security and the price of a risky security should also be less than that of a safe security.
C) greater than that on a safe security and the price of a risky security should be lower than that of a safe security.
D) less than that on a safe security and the price of a risky security should be greater than that on a safe security.
C
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An effective price support ________ producers and ________ a deadweight loss
A) has no effect on; does not create B) benefits; creates C) harms; creates D) benefits; does not create E) harms; does not create
Give the approximate importance of productivity as a source of economic growth in the United States and list the various sources which account for this productivity growth and their relative importance.
What will be an ideal response?