Firms That Require Funds from External Sources Can Obtain Them

question 65

Multiple Choice

Firms that require funds from external sources can obtain them in one of the following ways EXCEPT

• A) financial institution.
• B) financial markets.
• C) government.
• D) private placement.

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Definitions:

Increasing Market

A market trend characterized by rising stock prices and generally optimistic investor sentiment, often associated with economic growth.

Global Minimum Variance Portfolio

An investment portfolio that is designed to have the lowest risk (variance) for a given rate of return, by optimizing the allocation of assets.

Correlation Coefficient

A statistic in which the covariance is scaled to a value between −1 (perfect negative correlation) and +1 (perfect positive correlation).

Minimum Variance Portfolio

A portfolio constructed to achieve the lowest possible volatility or variability in returns among a set of potential assets.