Which of the Following Securities Has a Purely Fixed Claim

question 32

Multiple Choice

Which of the following securities has a purely fixed claim against a firm's cash flows?

• A) bonds
• B) options
• C) common stock
• D) None of the above.

---

Definitions:

Predictive Accuracy

The degree to which a forecast or prediction correctly anticipates future events or outcomes.

Random Assignment

A method used in experiments where participants are allocated to different groups in a way that ensures each has an equal chance of being assigned to any group, reducing bias.

Cause and Effect

The principle that every event (effect) has one or more causes; the basis of logical reasoning and scientific investigation.

Experimenters

Individuals who conduct experiments to test hypotheses or observe phenomena under controlled conditions.