AAA Company Stock Has a Higher Expected Rate of Return

question 48

Multiple Choice

AAA Company stock has a higher expected rate of return than ZZZ Company stock.All else being equal,you would expect that relative to ZZZ,AAA company stock provides

• A)less risk and less liquidity.
• B)less risk and more liquidity.
• C)more risk and less liquidity.
• D)more risk and more liquidity.

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Definitions:

Pyloric Sphincter

The valve-like structure composed of a circular band of muscle at the juncture of the stomach and small intestine.

Pylorus

The opening from the stomach into the duodenum, controlled by a sphincter that regulates the passage of food.

Small Intestine

A long, coiled tube within the digestive system where most of the digestion and absorption of nutrients occurs, connecting the stomach to the large intestine.

Soft Palate

The flexible part at the back of the roof of the mouth, separating the mouth from the nasopharynx, and plays a key role in speech and swallowing.