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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