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Which of the following businesses are most exposed to interest rate risk? *       A. A company with a high equity to debt ratio       B. A company with a large amount of floating rate debt       C. An al-equity company       D. An investment company with an investment portfolio that matches its investment horizon.

Which risk ratios best answer each of the following financial questions? a. How quickly is a company able to collect its receivables? b. How quickly is a company able to sell its inventory? c. Is the company able to make interest payments as they become due?

What does the book value of debt and equity refer to? O A. The par values of common stock and the maturity values of debt B. What a willing buyer and a willing seller will exchange the asset for O C. The values at which they are traded in the financial markets D. The values at which debt and equity are carried on a balance sheet

For which of the following balance sheet items will the book value and market value most likely be closest at the time the balance sheet is prepared? Select one: O a. Short-term debt O b. Net fixed assets O c. Long-term debt O d. Common stock O e. Retained earnings

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2. How would you describe the correlation between risk and return in investments, and what are the various types of income that investors consider from their standpoint?

Match each definition that follows with the term (a–h) it defines.   Question 7 options:   a company's ability to make interest payments and repay debt at maturity   focuses on a company’s ability to generate net income   useful for comparing one company to another or to industry averages   use debt to increase the return on an investment   measures the risk that interest payments will not be made if earnings decrease   the percentage analysis of the relationship of each component in a financial statement to a total within the statement   a percentage analysis of increases and decreases in related items on comparative financial statements   an analysis of a company’s ability to pay its current liabilities   1. solvency 2. leverage 3. times interest earned 4. horizontal analysis 5. vertical analysis 6. common-sized financial statements 7. current position analysis 8.…

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1. What are the quantitative characteristics of the assets and how to measure them? 2. How does one asset in the same portfolio influence the other one in the same portfolio? 3.And what could be the influence of this relationship to the investor’s portfolio? 4. What is relationship between the returns on an asset and returns in the whole market (market portfolio)

Which of the following would be an entry in the statement of changes in equity? Select one: a. Revaluation reserve b. Revaluation gain c. Taxation d. Long term loans

Which of the following is a characteristic of a money market financial instrument? O A. High risk B. Low risk C. Low credit quality O D. Equity instrument

These are ways in which depository financial institutions measure liquidity risk except: a. Liquid assets to total assets. b. Liquid assets to long term liabilities. c. Maturity gap analysis return. d. Net liquidity statement.

In order to assess a company’s ability to fulfi ll its long-term obligations, an analyst wouldmost likely examine:B . liquidity ratios.

Which of the following is the risk due to a firm's debt usage?      Business risk     Financial risk     Market risk     Interest rate risk     Purchasing power risk     Exchange rate risk