Choose the Word or Phrase in [ ] Which Will

question 98

Short Answer

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The [lower | higher] a bond's rating,the more likely the issuer will default.

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Definitions:

Expected Return

The anticipated amount of profit or loss an investment generates, based on historical data or probabilistic estimates.

Dividend

A payout to shareholders from a company's earnings, reflecting the company's earning power and success.

Stock Price

The current price at which a share of a company is being traded on the stock market.

Diversification

Diversification is an investment strategy aimed at reducing risk by allocating investments among various financial instruments, industries, or other categories.