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

question 46

Multiple Choice

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

• A) Weighted toward long-term securities because they pay higher rates.
• B) Weighted toward short-term securities because they pay higher rates.
• C) Weighted toward S.A.Treasury securities to avoid interest rate risk.
• D) Weighted toward short-term securities to avoid interest rate risk.
• E) Balanced between long- and short-term securities to minimise the effects of either an upward or a downward trend in interest rates.

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Definitions:

Moral Boundaries

The ethical limits and guidelines that individuals set for themselves, guiding their behavior and interactions.

Ethical Decisions

Choices made based on moral principles and values, considering what is right and beneficial for the majority or for adhering to moral standards.

Sufficient Power

The adequate ability or capacity to act or influence outcomes, decisions, or behavior.

Character Education

The teaching of moral and ethical values through education, aiming to develop responsible, respectful, and caring individuals.