Which of the Following Statements Is True? Please Select All

question 11

Multiple Choice

Which of the following statements is true? Please select all that apply.

• A) A Director owes special duties to his/her company.
• B) A Director must act in the interests of the shareholders.
• C) Directors must only ever think in the short-term interests of the company.
• D) Directors must act in the interests of employees even if this conflicts with shareholder interests.

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Definitions:

Risk-Free Rate

The theoretical return on an investment with no risk of financial loss, typically represented by the yield on government bonds.

Risk-Free Rate

The theoretical return on an investment with zero risk, typically represented by the yield on government securities.

Expected Rate

The rate of return that an investor anticipates earning on an investment without taking into account inflation or other factors that could affect the actual yield.

Liquidity Spreads

The difference in yield or cost between liquid (easily convertible to cash) assets and illiquid assets, often indicative of the liquidity premium required by investors.