Of the Following Four Investments,________ Is Considered to Be the Safest

question 9

Multiple Choice

Of the following four investments,________ is considered to be the safest.

• A) commercial paper
• B) corporate bonds
• C) Treasury bills
• D) Treasury bonds
• E) U.S.Agency issues

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Definitions:

Capital Structure

The combination of borrowing and ownership investment utilized by a business to finance its activities and expansion.

Shares Outstanding

The total number of shares of a company that have been issued and are held by shareholders, including shares held by the public as well as restricted shares owned by the company’s insiders.

Unlevered Cost

The cost of financing a project or investment without any debt, reflecting the expenses incurred using only equity financing.

Weighted Average

A weighted average is a calculation that takes into account the varying degrees of importance of the numbers in a data set, providing a measure that reflects their contribution to the overall total.