Relationship between risk and return in investment

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1. Why do we evaluate the quick ratio? Is it possible for the current ratio to be strong, while the quick ratio is unacceptable? What would that mean?

2. What is the relationship between risk and return in investment decision making? Give an example.

3. A 3-year bond paying 4% annual coupons pays $1000 at maturity. Today the bond sells for $986.98. To the nearest one hundredth of one percent, the bond's yield is

3.16%

4.87%

4.67%

4.47%

None of the above

Reference no: EM131880785

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