Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Buying common stock is riskier than buying a U.S Treasury bill. state reason in 'other'
true
False
Expert Solution
Step 1
Common stock refers to the stock issued by public companies to the public for the purpose of raising capital, and investors invest in common stock for generating higher returns, while treasury bonds are very safe compared to the common stock.
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