Asked by Olympia Thompson on Jul 06, 2024
Verified
Investors make decisions to purchase the stocks and bonds of corporations based on:
A) Expected future cash flows
B) The issuing company's marketing strategy
C) Risk
D) All of the above
E) A and C only
Expected Future Cash Flows
The projected amount of money a company expects to receive and pay out over future periods.
Risk
The exposure to potential financial loss or gain, often measured by the variability of returns.
- Determine elements that influence stock market valuations and choices made by investors.
Verified Answer
EW
Expert WritersJul 08, 2024
Final Answer :
E
Explanation :
Investors primarily make decisions based on the expected future cash flows and the level of risk associated with purchasing the stocks and bonds of corporations. The marketing strategy of the issuing company may have some impact on an investor's decision, but it is not one of the primary factors. Therefore, the correct answer is A and C only.
Learning Objectives
- Determine elements that influence stock market valuations and choices made by investors.