Which of the Following Statements Is True

question 79

Multiple Choice

Which of the following statements is 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.

---

Definitions:

Work-comes-first Lifestyle

A way of living where professional responsibilities and career aspirations take precedence over personal life or leisure activities.

Social Responsibility

The duty of businesses to contribute positively to society and minimize their negative impacts on the environment and stakeholders.

Nonprofit Programs

Nonprofit programs are initiatives or projects undertaken by nonprofit organizations, aimed at serving the public interest or specific societal needs without the intention of making profits for distribution.

External Migration

The process of moving outside one's country or region of origin to live in another country or region.