1. As the yield to maturity increases, the:
a. higher the price the investor offers to buy a bond.
b. longer the time to maturity.
c. amount the investor is willing to pay to buy a bond decreases.
d. lower the rate of return desired by the investor.
e. lower the coupon rate desired by that investor.
2. Stock A has an expected return of 13% and a standard deviation of 22%, while Stock B has an expected return of 11% and a standard deviation of 25%. If an investor is less risk-averse, they will be likely to choose…
A) Stock A
B) Stock B
C) Neither