Answer to Question #295843 in Finance for GIGIG

Question

One of the following statements is true:

a. the NPV_invest is a sum of future values

b. a rational investor seeks a higher risk to return ratio from all investment alternatives

c. the lowest risk on the financial market is characteristic to state bonds

d. deposits are usually inflated by the central bank

e. normal probability distribution is common on the US stock exchange

Answer 1

true is:

c. the lowest risk on the financial market is characteristic to state bonds

But it can also be

a. the NPV_invest is a sum of future values

since NPV is the value of future money discounted