Considering the value of a financial instrument, the bigger the size of the promised payment:

Question

Quizplus · Accepted Answer

The value of a financial instrument is directly correlated with the size of the promised payment. This means the larger the promised payment, the more valuable the financial instrument. This is because investors typically consider the potential return on investment when making decisions, so a larger promised payment is seen as a greater potential return. However, it's important to note that larger promised payments may come with higher risk, so investors need to weigh the potential return against the potential risk before making a decision.

Considering the Value of a Financial Instrument, the Bigger the Size