Which of the Following Would Not Be Reported on the Balance

question 152

Multiple Choice

Which of the following would not be reported on the balance sheet as a cash equivalent?

• A) Money market fund
• B) Sixty-day certificate of deposit
• C) Six-month Treasury bill
• D) Money market savings certificate

---

Definitions:

Well-Diversified Portfolio

A portfolio that contains a wide variety of investments across multiple asset classes to reduce risk.

Variance of Returns

A statistical measure that captures the dispersion or spread of an asset's returns around its mean or average return.

Arbitrage Opportunity

The opportunity to purchase a financial instrument at a reduced cost in one marketplace and sell it at an elevated price in a different marketplace to capitalize on the discrepancy between the two prices.

Risk-Free Rate

The theoretical return on an investment with zero risk, often represented by the yield on government securities such as U.S. Treasury bills.