Because long-term securities face greater risk of capital loss than do short-term securities, investors generally:Group of answer choicesrequire a higher yield on long-term securities.require a lower yield on long-term securities.. pay a higher price for long-term securities.stay away from long-term securities.

Normally, long-term bonds offer _____(i)_____ yield to maturity because they are ____(ii)____ and investors expect interest rate to _____(iii)_____ in the long run.Question 11Select one:a.(i) lower; (ii) safer; (iii) decreaseb.(i) higher; (ii) riskier; (iii) increasec.(i) higher; (ii) safer; (iii) decreased.(i) lower; (ii) risker; (iii) increase

Multiple Choice QuestionWhich type of investment often returns more than other investment alternatives like bonds, yet it is also more risky?Multiple choice question.stockscertificates of depositbondslife insurance

Consider four different financial products you can invest in: 1. A 12-month certificate of deposit that earns 2% annual interest. 2. A par 1-year risk-free bond with a 2% annual coupon. 3. A par 1-year risky bond with a 3.5% annual coupon. 4. A $100 per share value stock that typically pays a 2–4% dividend annually. Question 4 Which of these can be sold short? State at least 2 reasons WHY you selected one or more securities OR why you did NOT select the other one/ones.

The reason FIs can offer highly liquid, low price-risk contracts to savers while investing in relatively illiquid and higher risk assets are the following except A.FIs can provide the savers with higher returns than corporations. B.because FIs have a cost advantage in monitoring their portfolios.C.significant amounts of portfolio risk are diversified away by investing in assets that have correlations between returns that are less than perfectly positive.D.because individual savers cannot benefit from risk diversification.E.because diversification allows an FI to predict more accurately the expected returns on its asset portfolio.

Select all that applyWhy are shareholders more keen on investing in high-risk projects during times of financial distress?Multiple select question.High-risk projects offer the potential for a higher return for shareholders.Bond covenants require shareholders to invest in high-risk projects during times of financial distress.High-risk projects are likely to succeed during times of financial distress.The shareholders will lose no more than they've already lost.