Generally Speaking,which Appears to Be a Desirable Current Ratio

question 31

Multiple Choice

Generally speaking,which appears to be a desirable current ratio?

• A)20 to 1.
• B)1 to 20.
• C)2 to 1.
• D)1 to 2.

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Definitions:

Unsystematic Risk

The risk of price changes in a company's stock due to factors specific to the company, as opposed to market-wide factors.

Treasury Bills

Short-term U.S. government debt obligations maturing in one year or less, considered a safe and liquid investment.

Risky Portfolio

A collection of investments that has a higher standard deviation, but potentially higher returns.

Unsystematic Portion

The segment of risk in an investment portfolio that can be mitigated through diversification, specific to individual securities.