Who 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, even if it meant taking some risk. Stocks have more potential for higher returns but also carry more risk than bonds, so Tim made the correct choice by purchasing stock issued by Specific Electric instead of bonds. The other options do not match the individual's stated objective or are illogical choices, such as purchasing stock when the objective is to lend money at a specified rate of interest.

Who Purchased the Correct Asset to Meet Their Objective