Which Type of Information Would Be of Most Interest to Trade

question 27

Multiple Choice

Which type of information would be of most interest to trade creditors?

• A) dividends declared
• B) ability to pay debts
• C) pollution of waterways adjacent to the firm's factory
• D) continuity of orders for the firm's products.

---

Definitions:

Risk Premium

The additional return expected by an investor for taking on a higher level of risk compared to a risk-free investment.

Treasury Bills

Short-term government securities issued at a discount from the par value and pay no interest before maturing.

Weak Form Efficiency

Refers to a theory in financial economics that suggests all past market prices and data are fully reflected in current stock prices, implying that past price movements cannot predict future stock prices accurately.