Money & Bank MCQ
MB Chapter 6
As default risk increases, the expected return on corporate bonds ________, and the return becomes ________ uncertain, everything else held constant.
As default risk increases, the expected return on corporate bonds ________, and the return becomes ________ uncertain, everything else held constant.
As default risk increases, the expected return on corporate bonds ________, and the return becomes ________ uncertain, everything else held constant.
A) increases; less
B) increases; more
C) decreases; less
D) decreases; more
Answer: D
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