You Want to Purchase Bonds from a Bank That Offers

question 45

Multiple Choice

You want to purchase bonds from a bank that offers high interest.However,you know that the bank's profitability has declined in recent times.Which of the following would you choose to help you make the best possible decision under these circumstances?

• A) the dominance principle
• B) the expected value principle
• C) the elimination technique
• D) the random choice decision making

---

Definitions:

Economic Growth

The increase in the amount of goods and services produced by an economy over time, often measured by the annual percentage growth of a country's gross domestic product (GDP).

Equally-Weighted Portfolio

An investment portfolio where each asset is allocated the same proportion of the total investment, disregarding market capitalization.

Portfolio Return

The overall gain or loss of an investment portfolio, considering all sources of income and capital gains.

Single Factor APT

Arising from the Arbitrage Pricing Theory, this is an asset pricing model based on a single factor, typically the market return, to predict security returns.