California Coast University BAM513 Unit 2

Question 1) If a person’s required return does not change when risk increases, that person is said to be a. risk-indifferent. b. risk-aware. c. risk-averse. d. risk-seeking. 2) The ________ of an asset is the change in value plus any cash distributions expressed as a percentage of the initial price or amount invested. a. return b. risk c. probability d. value 3) Prime-grade commercial paper will most likely have a higher annual return than a. a common stock. b. a Treasury bill. c. a preferred ...