Each of the Following Instruments Demonstrates the Safety of Principal

question 20

Multiple Choice

Each of the following instruments demonstrates the safety of principal characteristic common to marketable securities EXCEPT

• A) banker's acceptances.
• B) Treasury bills.
• C) common stock.
• D) short-dated bonds.

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Definitions:

Outcome

The result or consequence of an experiment, action, or occurrence.

Prior Probabilities

Initial estimates of the probabilities of events.

Probabilities

The assessment of the probability that a particular event will take place.

Combinations

A method of counting that determines the number of possible arrangements in a collection without regard to the order of the elements.