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Answer the following questions (a) (2) Between a government bond and an ordinary stock, which one is less risky? Why? (b) (2) Between the bond

Answer the following questions

(a) (2) Between a government bond and an ordinary stock, which one is less risky? Why?

(b) (2) Between the bond market and the equity market of a developed country, which one

has bigger size?

(c) (2) What are the major differences between the Treasury security market and the LIBOR

market?

(d) (2) What do we mean by linear derivatives?

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