A Corporate Bond Rated B by Moody's Would Be Suitable

question 38

Multiple Choice

A corporate bond rated B by Moody's would be suitable for:

• A)every investor.
• B)very cautious investors.
• C)speculators.
• D)no one because the bond issue is in default.
• E)investors who are highly dependent upon the interest income.

---

Definitions:

Randomly Selected

A method of selection where each member of a population has an equal chance of being chosen, often used to ensure unbiased samples in research.

Inferential Statistics

A branch of statistics that allows one to make predictions or inferences about a population based on a sample.

Type I Error

Deciding wrongly that there was a significant result when in fact there was not.

Standard Deviations

A measure of the amount of variation or dispersion of a set of values.