Which of the following is true of risk premium? a. The speculative corporate issues have a lower risk premium than that of the higher rated corporate issues. b. The government bonds have a higher risk premium than that of corporate bonds. c. The lower-rated corporate issues have a higher risk premium than that of the higher rated corporate issues. d. T-bills have a have a higher risk premium than that of Treasury bonds.
Which of the following is true of risk premium? a. The speculative corporate issues have a lower risk premium than that of the higher rated corporate issues. b. The government bonds have a higher risk premium than that of corporate bonds. c. The lower-rated corporate issues have a higher risk premium than that of the higher rated corporate issues. d. T-bills have a have a higher risk premium than that of Treasury bonds.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter19: The Basic Tools Of Finance
Section: Chapter Questions
Problem 3PA
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Which of the following is true of risk premium?
a.
The speculative corporate issues have a lower risk premium than that of the higher rated corporate issues.
b.
The government bonds have a higher risk premium than that of corporate bonds.
c.
The lower-rated corporate issues have a higher risk premium than that of the higher rated corporate issues.
d.
T-bills have a have a higher risk premium than that of Treasury bonds.
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