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Suppose you buy 10,000 shares of MSFT. To what are you entitled? If you pay 100 per share today, what is the most money you
Suppose you buy 10,000 shares of MSFT. To what are you entitled? If you pay 100 per share today, what is the most money you could lose over the year of 2020? Are the shares of MSFT risker than the corporate bonds of MSFT? Why?
Then, describe what LIBOR is. Why LIBOR is typically higher than the T-bill rate of the same maturity?
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