The Excess Return If the Difference Between the Average Return

question 62

Multiple Choice

The excess return if the difference between the average return on a security and the average return for:

• A) Treasury Bonds.
• B) a portfolio of securities with similar risk.
• C) a broad based market portfolio like the S&P 500 index.
• D) Treasury Bills.

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Definitions:

Deposits In Transit

Deposits made and recorded by a company but not yet reflected on the bank statement.

Outstanding Checks

Checks that have been issued by a company but have not yet been cleared or cashed by the recipient.

Discounted Note

A short-term debt security sold for less than its face value that will pay the face value at maturity; it reflects the discounted present value of the future cash flow.

Proceeds

The total amount of money received from a transaction, such as the sale of an asset, before any deductions.