Choose the correct statement Select one: A. A flight to quality during the reccessions increases the...

Choose the correct statement

Select one:

A. A flight to quality during the reccessions increases the risk premium.

B. Legal tender is the provision that shields the owner of a corporation from loosing more than their investment.

C. A corporate's market capitalization is the total value of its common stocks.

D. When the yield curve is strictly downward sloping, term spread must be positive.

Solutions

Expert Solution

Answer: A) A flight to quality during recessions increases the risk premium.

The above statement is correct.

Justification:

during volatile occasions, investors' compelling hazard avoidance increments. Accordingly, there is a flight to quality, as in the risk premium financial specialists require per unit of unpredictability increases.

Rahul Sunny answered 1 year ago

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