Answer: Collateral bonds
Explanation: In simple words, collateral or secured bonds refers to the the bonds that have are backed by the security of some financial asset such as any stock or some other bonds which are referred to as collateral.
These collateral assets are held and deposited by the trustee at the discretion of the holders. Generally, the interest rate on these bonds is Lower than the interest rates of normal bonds without collateral as they have an additional security.
In case the company fails to pay to the bonds holders they can pressure the company to sell the asset and make payments to the bondholders. These bonds are issued by strong organisations to some specific individuals.
Answer:
The correct option is Dana might be indifferent between C, A, and B.
Explanation:
Note: See the attached photo for the indifference curve showing points A, B and C.
The answer can be explained using an indifference curve.
An indifference curve is a graph that depicts the combination of two commodities that provide equal satisfaction or utility to the consumer. A consumer is indifferent between the two commodities at each point on an indifference curve because all points on the curve provide him with the same level of satisfaction or utility.
In the attached photo, bundles A, B and C are plotted as points on the same indifference curve (IC). Since points A, B and C are on the same IC, it therefore implies that Dana might be indifferent between C, A, and B.
Therefore, the correct option is Dana might be indifferent between C, A, and B.
Answer:
The false statement is letter "A": We say a portfolio is an efficient portfolio whenever it is possible to find another portfolio that is better in terms of both expected return and volatility.
Explanation:
An effective portfolio is a portfolio with the highest expected revenue for a given risk level or a portfolio with the lowest risk level for a given expected revenue. When the portfolio has reached either one of the two points it is said that it has reached its efficient frontier.
In that case, option "A" is false since the portfolio efficiency has nothing to do with the similarity it may have with another one.
I got to think about this again. Come back later! X-322.22
