Risk Exposure Due to Heavy Short-Term Borrowing Can Be Compensated

question 18

Multiple Choice

Risk exposure due to heavy short-term borrowing can be compensated for by

• A) carrying highly liquid assets.
• B) carrying many illiquid assets.
• C) carrying longer term, more profitable current assets.
• D) carrying more receivables to increase cash flow.

---

Definitions:

Population variance

A measure of the dispersion of all data points within a population, squared from the mean of the population.

Confidence interval

A gamut of numbers, produced from sample statistics, believed to enfold the covert value of a population parameter.

Sample standard deviation

A statistic that measures the dispersion of a dataset relative to its mean and is calculated as the square root of the variance.

True average age

The actual mean age of all individuals in a specified group or population.