Ques Which of the following statements is true? Not yet Marked out of 0.50 Flag question Select one: a. Money market instruments are less liquid than capital market instruments because they have shorter life cycle, usually less than one year O b. Treasury bills mature after more than one year and are risky assets because they are not guaranteed to be profitable O c. Corporate bonds are less risky compared to common shares and the returns on bonds are higher compared to stock returns O d. Bond holders are considered first claimants whereas the true owners of the corporations are the residual claimants Question 4 Choose the most accurate answer Not yet Marked out of 050 F Flag question Select one: a. If a bank compounds savings accounts annually, the annual percentage rate will exceed the effective annual rate O b. If a bank compounds savings accounts quarterly, the annual percentage rate will exceed the effective annual rate O c. If a bank compounds savings accounts daily, the annual percentage rate will exceed the effective annual rate d. The effective annual rate is higher than the annual percentage rate because the effect of compounding interest O e. If a bank compounds savings accounts semi-annually, the annual percentage rate will exceed the effective annual rate You are interested in an asset traded in the TSX. If the rate of return on the TSX is predicted to fluctuate to either 14% or 6%, and if you calculated the expected rate of return on this market to be 10%, can you find the systematic risk of assetj if you know that the covariance between the rate of return on and the rate of return on the TSX is 8? If your answer is yes, explain how. If your answer is no, explain why not. Please keep your explanation short (5-6 lines at most)