Which type of security is considered the most risky
21. Which type of security is considered the most risky:
Long term corporate bond, common stocks of large companies, common stocks of small companies, long tern government bonds?
22. How can investors reduce the risk associated with an investment portfolio without having to accept a lower expected return?
a. increase the amount of money invested in the portfolio
b. Wait until the stock market rises
c. purchase a variety of securities; i.e., diversity
d. purchase stocks that have exceptionally high standard deviations
23. An example of a Eurobond is a bond issued in Asia by U.S. Corporation with interest and principal payments made in U.S. Dollars. True or False
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