Which of the Following Is a Condition to Record an Investment

question 102

Multiple Choice

Which of the following is a condition to record an investment as an available-for-sale security?

• A)The investor plans to hold the debt security until it matures.
• B)The investor should have a significant interest in the voting stock of the investee.
• C)It must be a debt security.
• D)The ownership in the voting stock of the investee should be less than 20 percent.

Grasp the objective of wage and salary surveys and their role in achieving external equity.

Comprehend the concept and significance of compensable factors in achieving internal equity.

Understand various job evaluation methods and systems.

Recognize the relevance of job evaluations to organizational goals and compensation policies.

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Definitions:

Black-Litterman Model

A portfolio allocation model that combines expected returns based on equilibrium assumptions with the views of an investor.

Portfolio Manager

A professional responsible for making investment decisions and overseeing a portfolio of assets to achieve the investment objectives of their clients or institution.

Tracking Error

A measure of the deviation from the performance of a benchmark by an investment portfolio.

Optimized Portfolio

A portfolio of investments that has been designed to achieve the best possible balance of risk and return, based on specific investor goals and constraints.