1. If a bond's yield to maturity is larger than the bond's coupon rate, then the bond’s price…
A. is selling at a discount.
B. is priced at par.
C. has reached its maturity date.
D. is selling at a premium.
2. Which of the following statements about diversification is incorrect?
A) Mutual funds typically have a diversified portfolio.
B) Diversification reduces risk.
C) Risk-bearing financial institutions employ diversification.
D) Diversification requires that all investments have the same risk/return characteristics