1. If you were able to put together a portfolio that completely eliminated all risk, what return would you expect to earn and why?
2. If someone called you and told you that he/she could guarantee you high returns on your investments with little or no risk, what would you do and why.
3. When there is uncertainty in the marketplace, what happens to yield spreads and why?
4. Your grandfather has great faith in bonds and has heard about some "high yield bonds" that are available. He has asked you for your opinion. What advice will you give him?
5. Why do venture capital companies often choose preferred stock for their equity position?