Which statement is TRUE regarding the riskiness of money market instruments and capital market instruments? * Changing economic prospects can cause very large changes in current stock values. Distant...

Which statement is TRUE regarding the riskiness of money market instruments and capital market instruments? *

Changing economic prospects can cause very large changes in current stock values.

Distant cash flows for stocks can be known with certainty, make them riskier than money market instruments.

Money market instruments have predictable cash flows and mature in one year or less, so they are much more risky.

The prices of long-term capital market instruments are less sensitive to changes in interest rates than prices of short-term instruments.

Jun 07, 2022

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