questions 1 through 7

1. Which of the following balance sheet accounts is not a component of working capital? a. Accounts receivable b. Cash c. Inventory d. Long-term debt 2. An interest rate or retum on investment (ROI) that has been adjusted for the offect of inflation is called a(n) a. effective rate. b. nominal rate. c. quoted rate. d. real rate. 3. In finance, a portfolio is a. an asset that appreciates in value over time. b. a group of different types of assets held by an investor c. a new issue of securities that are being offered for sale to the public d. a group of short-term marketable securities. 4. The stated interest payment, in dollars, made on a bond each year is called the bond's a. coupon. b. coupon rate. C discount rate. d. dollar return. 5. At any given time, the rate of return required by investors in the financial markets for owning a particular type of bond is called the bond's a. hurdle rate. b. coupon rate. c. risk premium. d. yield to maturity. 6. "Speculative" bonds with a high yield to maturity and a relatively high risk of default are often referred to as a. muni bonds. b. emerging market bonds. C. junk bonds d. sub-prime bonds. Over the long term, which of the following types of securities are most likely to have the highest average return? a. Large-company stocks b. Corporate bonds O Treasury bills d. Small-company stocks