A Portfolio of Large Company Stocks Would Contain Which One

question 17

Multiple Choice

A portfolio of large company stocks would contain which one of the following types of securities?

• A) stocks of the firms which represent the smallest 20% of the companies listed on the NYSE
• B) U.S. Treasury bills
• C) long-term corporate bonds
• D) stocks of firms included in the S&P 500 index
• E) long-term government bonds

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Definitions:

Payment Promise

A commitment by one party to pay another, often documented in a formal agreement or note.

Common Stock

A type of security that represents ownership in a corporation, entitling holders to a share of the company’s profits through dividends and/or capital appreciation.

Photography Equipment

Tools and devices used in the process of capturing photographs, such as cameras, lenses, lighting, and accessories.

Cash Account

An account that records cash transactions, including receipts and payments of cash.