Who Purchased the Correct Asset to Meet Their Objective

question 149

Multiple Choice

Who purchased the correct asset to meet their objective?

• A) Michelle wanted to be a part owner of Mamma Rosa's Pizza,so she purchased a bond issued by Mamma Rosa's Pizza.
• B) Tim wanted a high return,even if it meant taking some risk,so he purchased stock issued by Specific Electric instead of bonds issued by Specific Electric.
• C) Jennifer wanted to buy equity in Honda,so she purchased bonds sold by Honda.
• D) George wanted to lend money at a specified rate of interest to Research In Motion (RIM),so he purchased RIM stock.

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Definitions:

Probability

A notation of the chances an event will transpire, marked on a scale from 0 to 1.

Independent Events

Multiple events where the happening of one does not influence the likelihood of the other events happening.

P(A ∩ B)

P(A ∩ B) denotes the probability of the intersection of events A and B, meaning the probability that both A and B occur.

Occurrence

An event or incident that happens or takes place.