Which of the Following Should Be True for an Asset

question 82

Multiple Choice

Which of the following should be true for an asset to be considered liquid?

• A) It pays regular dividends.
• B) It can be bought and sold at an organized stock market or bourse.
• C) It is offered for sale on both primary and secondary markets.
• D) It can be easily bought and sold and the selling price is very close to the buying price at a given point in time.

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Definitions:

Sampling Distribution

The chance distribution associated with a statistic, formulated by extensive samples sourced from a defined population.

Standard Deviation

A metric indicating the degree of spread or diversity among a collection of numbers, determined by taking the square root of the variance.

Sample Mean

The average of a sample set of data, representing an estimate of the population mean.

Sampling Distribution

A distribution of a statistic obtained from a large number of samples drawn from a specific population.