1. If you believe the economy is about to go into a recession you might change your asset allocation by selling _______ and buying ______.
A. risky stocks; safe bonds
B. safe bonds; risky stocks
C. defensive stocks; risky stocks
D. defensive stocks; risky bonds
2. A firm has two classes of common stock. Class A has 1 million shares with 20 votes per share. Class B has 4 million shares with 1 vote per share. If the dividends per share are equal for both Class A and B stock, then Class A shareholders have ________ of the votes and ________ of the dividends.
a. 83.33%; 20.00%
b. 83.33%; 83.33%
c. 20.00%; 80.00%
d. 20.00%; 83.33%