A Risk-Free Investment of $10,000 Will Return 8

question 9

Multiple Choice

A risk-free investment of $10,000 will return 8%. A risky $10,000 investment has a 50% chance of
Defaulting and returning only $3,000. What default premium must the risky investment offer?

• A)10.6%
• B)78.0%
• C)36.0%
• D)25.2%

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Definitions:

Negatively

In a manner that expresses disagreement, refusal, or a negative outcome.

Family User Accounts

User accounts configured within an operating system to allow family members to access specific content and settings tailored for individual use.

Sign-In

The process of authenticating identity to gain access to a system or service by providing credentials, such as a username and password.

Malware

Short for 'malicious software', refers to any program or code designed to harm or exploit any programmable device, service, or network.