Answer the following statements true (T) or false (F)
1. An equity security does not represent an ownership interest in a corporation, although it pays dividends.
2. Debt securities represent a credit relationship with another company or governmental entity.
3. A security is a share or interest representing financial value.
4. Debt securities do not include U.S. government securities.
1. FALSE
2. TRUE
3. TRUE
4. FALSE
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Which of the following statements is CORRECT?
A. If an investor buys enough stocks, he or she can, through diversification, eliminate all of the diversifiable risk inherent in owning stocks. Therefore, if a portfolio contained all publicly traded stocks, it would be essentially riskless. B. The required return on a firm's common stock is, in theory, determined solely by its market risk. If the market risk is known, and if that risk is expected to remain constant, then no other information is required to specify the firm's required return. C. Portfolio diversification reduces the variability of returns (as measured by the standard deviation) of each individual stock held in a portfolio. D. A security's beta measures its non-diversifiable, or market, risk relative to that of an average stock. E. A stock's beta is less relevant as a measure of risk to an investor with a well-diversified portfolio than to an investor who holds only that one stock.
The term "webinar" is short for web-based seminar
Indicate whether the statement is true or false
A straight majority vote of the shares represented at a shareholders' meeting is usually required to pass resolutions
Indicate whether the statement is true or false
A person who signs an instrument without authorization can be held personally liable for payment by a holder in due course
Indicate whether the statement is true or false