Question
The value of a derivative security is worthless today. depends on the value of the related security. is unable to be calculated. is unrelated to
The value of a derivative security
is worthless today. | ||
depends on the value of the related security. | ||
is unable to be calculated. | ||
is unrelated to the value of the related security.
| ||
has been enhanced due to the recent misuse and negative publicity regarding these instruments. |
Which of the following is not a characteristic of a money market instrument?
Long maturity | ||
Liquidity premium | ||
Long maturity and liquidity premium | ||
Liquidity | ||
Marketability
|
Which of the following are characteristics of preferred stock?
I) It pays its holder a fixed amount of income each year at the discretion of its managers.
II) It gives its holder voting power in the firm.
III) Its dividends are usually cumulative.
IV) Failure to pay dividends may result in bankruptcy proceedings.
I, II, and III | ||
I, III, and IV | ||
I and III | ||
I, II, and IV
| ||
I, II, III, and IV |
Security selection refers to
the allocation of assets into broad asset classes. | ||
choosing which securities to hold based on their valuation. | ||
top-down analysis. | ||
investing only in "safe" securities. |
Commercial paper is a short-term security issued by ________ to raise funds.
the Federal Reserve Bank | ||
state and local governments | ||
the New York Stock Exchange | ||
commercial banks | ||
large, well-known companies |
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