dividends and claims in a firm Statement 2: Equity securities are loansmade by the is suing firm that would entitle the holdes certain interest andmaturity value. Statement 3: Debt securities include bonds, certificates of deposits, promissorynotes, pgovernm notes and bills. Statement 4: Equity securities include preferred and commonstocks. Statement 5: Derivative securities include instruments whose underlying assets are bonds, sto commodities, currencies, interest rates and other assets. 1. All statements are true b.Statements 1,2 and 3 are true c.Statements 2,3 and 4 are true d.Statements 3, 4 and 5 are true e.Statements 1,3 and 5 are true f. Statements 2,4 and 5 are true 3.
dividends and claims in a firm Statement 2: Equity securities are loansmade by the is suing firm that would entitle the holdes certain interest andmaturity value. Statement 3: Debt securities include bonds, certificates of deposits, promissorynotes, pgovernm notes and bills. Statement 4: Equity securities include preferred and commonstocks. Statement 5: Derivative securities include instruments whose underlying assets are bonds, sto commodities, currencies, interest rates and other assets. 1. All statements are true b.Statements 1,2 and 3 are true c.Statements 2,3 and 4 are true d.Statements 3, 4 and 5 are true e.Statements 1,3 and 5 are true f. Statements 2,4 and 5 are true 3.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text:2. Statement 1: Debt securities represent ownership in a firm that would entitle the holders certain
dividends and claims in a firm.
Statement 2: Equity securities are loans made by the issuing firm that wouldentitle the holders
certain interest andmaturity value.
Statement 3: Debt securities include bonds, certificates of deposits, promissorynotes, government
notes and bills.
Statement 4: Equity securities include preferred and common stocks.
Statement 5: Derivative securities include instruments whose underlying assets are bonds, stocks,
commodities, currencies, interest rates and other assets.
a. All statements are true b.Statements 1, 2 and 3 are true c.Statements 2, 3 and 4 are true
d.Statements 3, 4 and 5 are true e.Statements 1,3 and 5 are true f. Statements 2, 4 and 5 are true 3. Which
is correct about financial securities?
a. Financial securities guarantees retum to investors.
b. Financial securities eliminate risk that most financial managers are facing.
c. Diversification spreads risk and improves expected total retum.
d. Financial securities protect investors againstriskshocks brought by s ocial, economic, andpolitical
events.
e. All of the above
f. None of the above
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