Which of the following statements is true of debt securities?
A. Debt securities are usually in the form of bonds or loans.
B. Debt securities are usually in the form of preferred stocks.
C. Publicly issued debt (such as bonds or commercial paper) is rarely used by large companies.
D. Publicly issued debt (such as bonds or commercial paper) is more commonly used by small companies.
Answer: A
You might also like to view...
Nancy Duarte shows how stories that succeed are ones that use rhythm and repetition to contrast ______ with _______.
a. Rhetoric with reality b. The status quo with the future c. The mundane with the extraordinary d. Belief with rationality
Evidence in favor of market efficiency includes
A) performance of investment analysts and mutual funds. B) whether stock prices reflect publicly available information. C) the random-walk behavior of stock prices. D) all of the above.
Assume that your cousin holds just one stock, Eastman Chemical Bonding (ECB), which he thinks has very little risk. You agree that the stock is relatively safe, but you want to demonstrate that his risk would be even lower if he were more diversified. You obtain the following returns data for Wilder's Creations and Buildings (WCB). Both companies have had less variability than most other stocks over the past 5 years. Measured by the standard deviation of returns, by how much would your cousin's risk have been reduced if he had held a portfolio consisting of 60% in ECB and the remainder in WCB? (Hint: Use the sample standard deviation formula.)
Year ECB WCB 2011 40.00% 40.00% 2012 ?10.00% 15.00% 2013 35.00% ?5.00% 2014 ?5.00% ?10.00% 2015 15.00% 35.00% Average return = 15.00% 15.00% Standard deviation = 22.64% 22.64% A. 3.29% B. 3.46% C. 3.65% D. 3.84% E. 4.03%
The ______________________________ process comprises accumulating, classifying, and recording data, fueling the financial reporting, business reporting, and other reporting subsystems.
Fill in the blank(s) with the appropriate word(s).