Which of the Following Funds Is Most Likely to Have

question 57

Multiple Choice

Which of the following funds is most likely to have a debt ratio of 70% or higher?

• A) Bond fund
• B) Commingled fund
• C) Mortgage backed securities
• D) REIT

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Definitions:

Debt-to-Equity Ratio

A measure of a company's financial leverage indicating the proportion of company financing from debt compared to equity.

Balance Sheet

A Balance Sheet is a financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.

Corporation

A legal entity owned by shareholders, offering limited liability and existing independently of its owners.

Times Interest Earned

A financial metric indicating how many times a company's operating income can cover its interest expense, used to assess financial stability.