Buying common stock is riskier than buying a U.S Treasury bill. state reason in 'other'   true False

Q: what is meant by “The money market is necessary but not sufficient for the liquidity of securities…

A: Solution- The money market is an organized exchange market where participants can lend and borrow…

Q: Question 12 Interest rates spreads between corporate and government bonds O are countercyclical are…

A: Countercyclical means the measures that are against or counter effects on the economic cycle. For…

Q: Which of the following is a constrain for the investors? a. The mentality tontake the high risk b.…

A: Investing is a critical component of wealth growth. It enables the investor to fight inflation,…

Q: Is it reasonable to ignore IDIOSYNCRATIC RISK and care only about MARKET (SYSTEMIC) risk? What about…

A: Definitions  Idiosyncratic risk : In simple words, idiosyncratic risk can be understood as the risk…

Q: sed on the Signaling Theory, issuance of common stock is a negative sign.

A: Introduction : In simple words, the signalling theory states that the actions made by the company…

Q: Which of the following is the risk due to a changes in the stock market?      Business risk…

A: The investments that we make in debt, equity and other financial securities are exposed to different…

Q: Explain the statement “The money market is necessary but not sufficient for the liquidity of…

A: Money market instruments would be considered as investments under short term securities. These…

Q: Which one of the following is not a money market instrument?  A.     Treasury bill  B.…

A: Money market instruments are investment securities having a maturity life less than one year. These…

Q: 1. Which one of the following is not a money market security: a. Treasury Bill. b. REPO. c. LIBOR.…

A: Money market securities are short term securities or instruments generally issued by government,…

Q: explain the statement"The money market is neccessary but not sufficinet for the liduiidity of…

A: Money market is an instrument used to provide flow of short term funds in the economy. It consist of…

Q: Treasury share should not be classified as a current asset. Select one: True False

A: Lets us have basic understanding of treasury shares. This type of shares refer to shares which were…

Q: Was the creation of the subprime issue good for the stock market or bad (trick question?)? Good for…

A: The us subprime mortgage crisis was considered as multinational financial crisis that occured…

Q: Why are U.S. government securities viewed differently from state and local government securities in…

A: The question is based on the concept of risk of default in bond investment. The default risk is…

Q: Marketable securities are liquid financial instruments that can be quickly converted into cash at a…

A: Cash and cash equivalents are the most liquid current asset items included in quick assets, while…

Q: The cash flows associated with common stock are more difficult to estimate than those related to…

A: Common stock is the pool of common shares that a company issues

Q: Which of the following statements is FALSE? When a buyer seeks to buy a stock, the willingness of…

A: Option D is False. If the profit opportunities from having private expertise are large, other…

Q: why is money market necessary but not sufficient for the liquidity of securities on the stock market

A: Money market (MM) is a place where short term (ST) securities are traded. Generally, governments or…

Q: When you invest your money, you want to avoid risk at all cost. Which type of investment would you…

A: Treasury bills  are risk-free securities because they come with a government guarantee and are…

Q: According to the signaling theory, issuing common stock is negatively perceived. Is this true or…

A: Signaling theory focuses on how issue of debt and equity are perceived by the investors and how…

Q: Choose the correct statement about different types of financial markets: a. Capital market is the…

A: From the following statement, we have to find out the correct statement about the financial market.…

Q: Which of the following about Treasuy inflation protected securities is NOT true:

A: A treasury inflation protected security is one which protects the investor from rising inflation.…

Q: If most participants in the stock market do not follow what is happening to monetary aggregates,…

A: Stock market is the place where various financial securities such as common stocks, preference…

Q: Why is it reasonable to ignore diversifiable risk and care only about nondiversififiable risk? What…

A: Diversifiable risk is that risk that can be easily diversified by making the investment into…

Q: You buy a stock from the capital market. If the capital market is semi-strong efficient, which of…

A: When the capital market is semi strong efficient then it means that in the market the share prices…

Q: Which is correct about financial securities? a. Financial securities guarantees return to investors.…

A: Security is a financial asset or instrument that can be purchased, sold, or traded. It is issued by…

Q: e risk of investing in foreign stock markets depends on exchange rate uncertainty more than the risk…

A: Risk of investing outside country involves the risk of exchange rate due to which there is large…

Q: Which one is expected to be the safest investment. O Corporate bonds Common stock U.S. Treasury…

A: So if firms and governments want funds to fund initiatives and growth, they can borrow from the…