Which of the following people purchased the correct asset to meet their objective?
A)Michelle wanted to be a part owner of Mamma Rosa's Pizza, so she purchased a bond issued by Mamma Rosa's Pizza.
B)Tim wanted a high return, even if it meant taking some risk, so he purchased stock issued by Specific Electric instead of bonds issued by Specific Electric.
C)Jennifer wanted to buy equity in Honda, so she purchased bonds sold by Honda.
D)George wanted to lend money at a specified rate of interest to Research In Motion (RIM), so he purchased RIM stock.

Question

Quizplus · Accepted Answer

Tim's objective was to achieve a high return, which can typically only be achieved through purchasing stocks, as opposed to bonds which generally have lower returns but lower risk. Therefore, Tim made the correct choice by purchasing stocks issued by Specific Electric. The other choices do not match the stated objective.

Which of the Following People Purchased the Correct Asset to Meet