Which of the Following Securities Is Most Unlikely to Have

question 98

Multiple Choice

Which of the following securities is most unlikely to have a symmetrical return distribution, making the use of RiskMetrics model inappropriate?

• A)Common stock.
• B)Preferred stock.
• C)Option contracts.
• D)Consol bonds.
• E)30-year U.S.Treasury bonds.

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Definitions:

Presidential Appointments

Nominations made by the President to high-level positions within the federal government, requiring Senate confirmation.

Executive Branch

The branch of government responsible for implementing and enforcing laws, headed by the president at the federal level.

Circuit Justices

Federal judges of the United States courts of appeals who preside over a judicial circuit, often participating in appellate panel decisions.

Stays of Execution

Court orders that temporarily halt the execution of a judgment or the implementation of a legal penalty, often to allow for further review or appeal.