An investor is worried about the ability to quickly sell a security at current market prices. Which risk does this situation refer to?

	a.	Default risk
	b.	Maturity risk
	c.	Credit risk
	d.	Liquidity risk

1 points

QUESTION 9

After 2008, yields on commercial paper are ________ than historical commercial paper rates and Treasury bill yields are _________ than historical Treasury bill yields.

	a.	Higher, higher
	b.	Lower, higher
	c.	Higher, lower
	d.	Lower, lower

1 points

QUESTION 10

Which of the following is not an advantage of using an internal management approach for the firm s short-term investment portfolio?

	a.	Guaranteed expertise
	b.	Control
	c.	Less fraud
	d.	Increased likelihood of incentive alignment