Which of the Following Investments Is Not Likely to Be

question 136

Multiple Choice

Which of the following investments is not likely to be a proper investment for temporarily idle cash?

• A) Commercial paper.
• B) Treasury bills.
• C) Recently issued long-term corporate bonds.
• D) Government bonds due shortly.
• E) AT&T bonds due within one year.

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Definitions:

Hedge Funds

Investment funds that employ diverse strategies to earn active returns for their investors, often using high leverage and making speculative investments.

Investment Policy Statement

A document that outlines an investment strategy, objectives, and guidelines for a person or organization's portfolio.

Governance

The framework of rules, practices, and processes through which a company is directed and controlled, focusing on balancing the interests of its stakeholders.

Risk Management

The process of identifying, assessing, and controlling threats to an organization's capital and earnings.