Between two securities with the same expected yield and a different credit rating,the risk adverse investor would choose the security with the lowest rank rating.

Name: Between two securities with the same expected yield and a different credit rating,the risk adverse investor would choose the security with the lowest rank rating.
Brand: Quizplus
Rating: 4.9 (40 reviews)

Question

Quizplus · Accepted Answer

A risk-averse investor would prefer the security with the higher credit rating, as it indicates lower risk of default, assuming the expected yield is the same.

Between Two Securities with the Same Expected Yield and a Different