Which One of the Following Statements Is False

question 34

Multiple Choice

Which one of the following statements is false?

• A) The federal government sells bonds and securities to obtain financing.
• B) U.S. government Treasury securities carry a reduced risk of default when compared to corporate securities.
• C) U.S. government Treasury securities offer lower interest rates than corporate bonds.
• D) Most individual investors that purchase Treasury bills, notes, and bonds bid competitively.
• E) Treasury securities may be purchased through banks or brokers.

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Definitions:

Expected NPV

The anticipated net present value of a project or investment, calculated using estimated inflows and outflows to assess its profitability and risk.

Cost Of Capital

The rate of return a company must offer investors to entice investment in the company, reflecting the risk of investing in the firm.

Capital Asset Pricing Model

A framework detailing how expected returns on assets, especially stocks, correlate with systematic risk.

Accounting Beta

A measure of the sensitivity of a firm's earnings before interest and taxes to changes in the market as a whole.