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Selecting a CD. Casey has $1,000 to invest in a certificate of deposit. Her local bank offers her 3.94% on a twelve-month FDIC-insured CD. A
Selecting a CD. Casey has $1,000 to invest in a certificate of deposit. Her local bank offers her 3.94% on a twelve-month FDIC-insured CD. A nonfinancial institution offers her 6.44% on a 1twelve-month CD. What is the risk premium? What else must Casey consider in choosing between the two CDs? The risk premium is %. (Round to two decimal places.) Casey must also consider: (Select the best answer below.) A. the bank's risk tolerance. OB. that if she needs access to the money in a short period of time, the nonfinancial institution's CD might be too risky. OC. that if she only needs access to the money after a long period of time, the nonfinancial institution's CD might be too risky. OD. the government's risk tolerance 1 0 1 of 2
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