The Most Convenient Document for a Bank to Use to Get

question 8

Multiple Choice

The most convenient document for a bank to use to get a security interest in a wide range of assets of a business when the bank makes a large business loan is a(n)

• A)mortgage
• B)assignment of book debts
• C)general security agreement
• D)financing lease
• E)consignment

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Definitions:

Expected Return

The mean of the probability distribution of possible returns for a security or portfolio over a specified period.

Risk-Free Asset

An investment that is considered to have negligible risk of financial loss, typically government bonds of stable countries.

Capital Allocation Line

A line representing the risk-return trade-off of different portfolios, showing the highest expected return for a given level of risk.