Identify Whether Each of the Following Items Is a Financial

question 40

Essay

Identify whether each of the following items is a financial asset:
$$\begin{array} { | l | l | } \hline & \text { Financial asset? (Yes/No) } \\\hline \text { US dollars in petty cash } & \\\hline \text { Investment in 5-year bonds } & \\\hline \text { Investment in an option (derivative) } & \\\hline \text { Account receivable due in 30 days } & \\\hline \text { Investment in machinery } & \\\hline\end{array}$$

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Definitions:

Standard Deviation

An indicator of the extent of variability or spread within a collection of numbers, illustrating the degree to which these numbers diverge from one another in a dataset.

Normal Curve

A bell-shaped curve that represents the distribution of a set of data that is symmetrically distributed around the mean.

Binomial Random Variable

A random variable that follows a binomial distribution, representing the number of successes in a fixed number of binary experiments.

Standard Error

A statistic that measures the accuracy with which a sample distribution represents a population by using standard deviation and sample size.