As the yield to maturity increases

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Reference no: EM131975276

1. As the yield to maturity increases, the:

a. higher the price the investor offers to buy a bond.

b. longer the time to maturity.

c. amount the investor is willing to pay to buy a bond decreases.

d. lower the rate of return desired by the investor.

e. lower the coupon rate desired by that investor.

2. Stock A has an expected return of 13% and a standard deviation of 22%, while Stock B has an expected return of 11% and a standard deviation of 25%. If an investor is less risk-averse, they will be likely to choose…

A) Stock A

B) Stock B

C) Neither

Reference no: EM131975276

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