When Two Securities Have the Same Expected Cash Flows, the Value

question 47

Multiple Choice

When two securities have the same expected cash flows, the value of the ____ security will be higher then the value of the ____ security.

• A)high-risk; low-risk
• B)low-risk; high-risk
• C)high-risk; high-risk
• D)low-risk; low-risk
• E)none of the above

---

Definitions:

Ishiyama-gire

A type of ancient Japanese paper art that involves the creation of intricate patterns and designs, often with a focus on natural themes and subjects.

Tale of Genji Handscrolls

A collection of Japanese illustrated handscrolls from the early 12th century, depicting the narrative of the Tale of Genji, a classic work of Japanese literature.

Bush-Clover

A type of plant belonging to the genus Lespedeza, known for its slender branches and small pea-like flowers, and often featured in East Asian art and literature for its aesthetic qualities.

Autumn

One of the four seasons, marked by the cooling of temperature and the falling of leaves from deciduous trees, typically considered to run from September to November in the Northern Hemisphere.