Assume that an investor is offered a choice of a risk-free government

Assume that an investor is offered a choice of a risk-free government bond that is expected to
return 3.5% or a high-risk corporate stock.

According to one of the principles of finance, what
would induce the investor to purchase the corporate stock?
A) a return that is substantially higher than 3.5%
B) cash dividends
C) a return that is substantially lower than 3.5%
D) none of the above

ANSWER

A