Comparing different securities
Question: Comparing different securities (like CD's, bonds, and common stocks), please explain to me why it is important to know what interest rate should be used in that comparison. Provide a specific illustration complete with numbers.
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What information or data did the article suggest a business owner use to help decide on the best financing decisions?
What major benefits do corporations and investors enjoy because of the existence of organized security exchanges?
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Comparing different securities (like CD's, bonds, and common stocks)
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Risk aversion implies that some securities will go unpurchased in the market even if a large risk premium is paid to investors.
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