BUSN 380 help Making Decisions/uophelp.com BUSN 380 help Making Decisions/uophelp.com | Page 63

The value of the bond will not change.
It is impossible to determine whether the bond's value will increase
or decrease.
Question 4. 4. (TCO 5) Gina has recently become a widow with two
small children, and wants to make sure that both she and the children are
taken care of in the future. She received a check for $350,000 from a life
insurance company. Based on this information, Gina places a high
degree of importance on
beta.
safety.
business failure.
market risk.
liquidity.
Question 5. 5. (TCO 5) Mary Ann recently received a $20,000 gift from
her uncle and is considering investing in stocks, because she knows that
historically they have earned an approximately 10–12% rate of return
over the last few years. Referring to aspects of investing, Mary Ann is
most concerned about which of the following?
Risk
Return
Diversification
Liquidity
Income
Question 6. 6. (TCO 5) A $1,000 corporate bond pays 6.5% a year.
What is the annual interest you will receive?
$0.65
$6.50
$65.00
$1,060.50
$1,065.00