1. Corporations that want to attract more investors by lowering the selling price of their common stock might consider declaring a:
a. bankruptcy filing.
b. cash dividend.
c. margin call.
d. stock split.
2. The risk/return tradeoff investors assume means:
a. the less you risk, the more you stand to gain.
b. the same as diversification of your portfolio.
c. you will assume added risk, if you believe you can get a greater return.
d. the goal is to never risk liquidity - your investments should always be liquid and of short duration.