The Portfolio Balance Effect Suggests That Companies Prefer Investing Their

question 25

True/False

The portfolio balance effect suggests that companies prefer investing their cash in a single low-risk asset class.

---

Definitions:

Spicules

Small, spike-shaped structures found in certain animals like sponges, serving as a skeletal element.

Radial Symmetry

Body plan in which similar parts are arranged around a central axis, like spokes of a wheel.

Tissue Layers

Various layers of cells in an organism that have specific functions and form organs and other body structures.

Cnidarians

A phylum of aquatic invertebrate animals that includes jellyfish, corals, and sea anemones, characterized by their radial symmetry and stinging cells.