Financial Assets Permit All of the Following Except

question 30

Multiple Choice

Financial assets permit all of the following except

• A) consumption timing.
• B) allocation of risk.
• C) separation of ownership and control.
• D) elimination of risk.

---

Definitions:

Underwriters

Entities or individuals that evaluate and assume the risk associated with financial transactions, often seen in insurance and investment banking.

Treasury Stock

Shares that were once part of the outstanding shares and have been bought back by the issuing company, reducing the amount of outstanding stock on the market.

Yield to Maturity

The total return anticipated on a bond if the bond is held until it matures. YTM is considered a long-term bond yield expressed as an annual rate.

Semiannual Coupon Bonds

Bonds that pay interest to their holders twice a year.