Which of the Following Statement Completions Is CORRECT? If the Yield

question 14

Multiple Choice

Which of the following statement completions is CORRECT? If the yield curve is upward sloping,then the marketable securities held in a firm's portfolio,assumed to be held for emergencies,should

• A) consist mainly of long-term securities because they pay higher rates.
• B) consist mainly of short-term securities because they pay higher rates.
• C) consist mainly of U.S.Treasury securities to minimize interest rate risk.
• D) consist mainly of short-term securities to minimize interest rate risk.
• E) be balanced between long- and short-term securities to minimize the adverse effects of either an upward or a downward trend in interest rates.

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Definitions:

Premarital Cohabitation

The act of living together in a romantic relationship without being married.

Dating Cohabitation

Refers to unmarried couples living together in a romantic relationship.

Trial Marriage Cohabitation

Trial Marriage Cohabitation refers to a living arrangement where couples live together as if married, typically as a test of compatibility before formally tying the knot.

Drift

The slow movement, change, or development from one state, condition, or place to another, often without a clear direction or purpose.