If You Have a Very Low Tolerance for Risk,which of the Following

question 10

Multiple Choice

If you have a very low tolerance for risk,which of the following bonds would you be least likely to hold in your portfolio?

• A)a U.S. Treasury bond
• B)a municipal bond
• C)a corporate bond with a rating of Aaa
• D)a corporate bond with a rating of Baa

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Definitions:

Profit Maximization

This strategy entails making business decisions that increase a firm's profits to its highest potential by evaluating cost structures and price points.

Price Elasticity Of Demand

A measure of how much the quantity demanded of a good responds to a change in its price, indicating its sensitivity.

Marginal Cost

The additional cost incurred from producing one more unit of a good or service.

Profit-Maximizing Seller

An economic agent whose primary objective is to achieve the highest possible profit from their sales.