Studies by Reilly and Wright (1994, 2001) and Fabozzi (2005)

question 64

Multiple Choice

Studies by Reilly and Wright (1994, 2001) and Fabozzi (2005) suggest analysis of high-yield bonds should be expanded to include all of the following EXCEPT

• A) the firm's competitive position with respect to cost and pricing.
• B) the firm's cash flow relative to interest expense, research expenses, and growth needs.
• C) the firm's market share and growth in sales.
• D) the quality of the total management team.
• E) the firm's size.

---

Definitions:

Valid

An argument based on deduction that is structured in a way that, if the premises are considered true, then the conclusion necessarily follows as true.

False Premise

A logical fallacy where an argument is built on a statement that is assumed to be true but is actually false, misleading, or unfounded.

Valid Deductive Argument

An argument where, if the premises are true, the conclusion must also be true, demonstrating a logical structure.

Conclusion

The statement within an argument that is backed up by other statements.