Multilateral Netting Is ________

question 56

Multiple Choice

Multilateral netting is ________.

• A) the netting of the credit or debit position of each participant vis-à-vis all other participants
• B) an electronic net settlement network designed to provide settlement to paper-based payment items
• C) the netting of the forward position of LVTS participants
• D) None of the above.

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Definitions:

WACC

Weighted Average Cost of Capital - a measure of a firm's cost of capital in which each category of capital is proportionately weighted.

WACC

stands for Weighted Average Cost of Capital, which is a calculation of a firm's capital cost from all sources, including equity and debt, weighted accordingly.

Capital Asset Pricing Model

A model used to determine the theoretical rate of return of an asset, considering risk and the time value of money.

Cost of Equity

The return a firm theoretically pays to its equity investors, i.e., shareholders, to compensate for the risk they undertook by investing their capital.