Which of the Following Statements Are True

question 86

Multiple Choice

Which of the following statements are true?

• A) A decrease in default risk on corporate bonds lowers the demand for these bonds, but increases the demand for default-free bonds.
• B) The expected return on corporate bonds decreases as default risk increases.
• C) A corporate bond's return becomes less uncertain as default risk increases.
• D) As their relative riskiness increases, the expected return on corporate bonds increases relative to the expected return on default-free bonds.

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Definitions:

Trust

The firm belief in the reliability, truth, or ability of someone or something.

Confidence

The belief in one's own abilities or qualities, including the certainty of acting with competence.

Market segment

A subset of a market made up of consumers or organizations that have similar characteristics and needs, targeted with specific marketing strategies.

Print media

Traditional forms of mass communication that disseminate information through printed materials such as books, newspapers, and magazines.