Which of the following people purchased the correct asset to meet his or her 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)All of the above are correct.

Question

Quizplus · Accepted Answer

Tim's objective was to achieve a high return, which is more likely to be achieved through investing in stocks rather than bonds. Bonds are generally more conservative investments with lower returns, while stocks have the potential for higher returns but also come with more risk. Therefore, Tim's purchase of stock issued by Specific Electric was a better choice to meet his objective.

Which of the Following People Purchased the Correct Asset to Meet