Firms That Require Funds from External Sources Can Obtain Them

question 16

Multiple Choice

Firms that require funds from external sources can obtain them from

• A) private placement.
• B) financial institutions.
• C) financial markets.
• D) all of the above.

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Definitions:

Expected Return

The anticipated profit or loss from an investment over a certain period, typically represented as a percentage.

Risk-Free Asset

An investment expected to return its original value without any loss and with absolute certainty, typically associated with government bonds.

Market

A place or system where buyers and sellers interact to trade goods, services, or financial instruments.

Expected Return

The anticipated amount of profit or loss an investment is likely to generate over a specific period.