Multiple Choice
I have $400 to invest.I am considering buying a CD (which will pay 6%) , but I also just got a prospectus from a corporation selling bonds, which promises 24%.I don't
know where to put my money! That is probably because:
A) I don't know what the expectation value of the CD is.
B) I don't know what the expectation value of the bond is.
C) I don't know the probability of the corporation making good on the bond.
D) I don't know what the return on the bond is.
Correct Answer:
Verified
Correct Answer:
Verified
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