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If investment A and investment B have identical cash flows, why would an investor pay more for investment A than investment B ? Select one:
If investment A and investment have identical cash flows, why would an investor pay more for investment A than investment B
Select one:
a The return required for investment is lower than the return required for investment
b The risk in the cash flows for investment is greater than the risk of the cash flows of investment
c The risk in the cash flows for investment is greater than the risk of the cash flows of investment
d This statement is invalid. You would always pay the same amount for two investments with equal future cash flows.
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What is the result of the widespread usage of the Internet with regards to efficient markets?
Select one:
a It makes information cheaper and more accessible thus making markets more efficient.
b It is subject to new regulation thus making markets less efficient.
c It increases the volatility of security prices thus making markets less efficient.
d It increases competition among brokers thus making markets more efficient.
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