Discover a wealth of knowledge at Westonci.ca, where experts provide answers to your most pressing questions. Ask your questions and receive accurate answers from professionals with extensive experience in various fields on our platform. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

Investor perception on the risk of bonds will raise their desired return.

a. true
b. false

Sagot :

The statement, investor perception on the risk of bonds will raise their desired return is true.

The higher an investment's risk, the greater its potential returns should be. By contrast, a very safe and low-risk investment should generally offer low returns. So, this investor perception will raise the desired return of the risk of bonds.

Generally, the higher the potential return of an investment, the higher the risk. Thus, there is no guarantee that you will actually get a higher return by accepting more risk. In this matter diversification is useful.

Hence, you can minimize the risk by making sure the company's bond you own is not a high risk company with a high probability of paying back.

To learn more about risk of bonds here:

https://brainly.com/question/14850768

#SPJ4

We hope our answers were helpful. Return anytime for more information and answers to any other questions you may have. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.