Federal Agency Issues Are Low-Risk Securities Issued by Government Agencies

question 304

True/False

Federal agency issues are low-risk securities issued by government agencies but not guaranteed by the U.S. Treasury.

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Definitions:

Return On Total Assets

A financial ratio that measures a company's profitability relative to its total assets.

Return On Equity

A profitability measure that calculates the amount of net income returned as a percentage of shareholders' equity.

Earnings Per Share

A measure of a company's profitability that calculates the portion of a company’s profit allocated to each outstanding share of common stock.

Earnings Per Share

A measure of a company's profitability calculated by dividing its net earnings by the number of outstanding shares.