Answer:
What would induce the investor to purchase the corporate stock is a rate of return that is significantly higher than 3.5% of a risk-free government bond.
Step-by-step explanation:
A high-risk investment can be described as an investment in which the level of risk is high and the probability of losing a significant portion or all of the money invested is high. As a result, underperformance is more likely in high-risk Investments than in other types of investments.
According to one of the principles of finance, the only incentive for inventors to invest in high-risk investment is the rate of return that is significantly higher than the rate of return of risk-free investments.
Therefore, what would induce the investor to purchase the corporate stock is a rate of return that is significantly higher than 3.5% of a risk-free government bond.