Question #3

Reading: Reading 39 Economics and Investment Markets

PDF File: Reading 39 Economics and Investment Markets.pdf

Page: 1

Status: Unattempted

Correct Answer: A

Question
Differences in credit spreads across sectors are least likely due to:
Answer Choices:
A. Differences in services and products that an industry produces
B. Differences in leverage typical of the sector
C. Differences in ratings
Explanation
Differences in credit spreads across sectors is related to differences in products/services the sector produces and leverage typically used in the sector.
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