"Float" Is the Term Given to

question 103

Multiple Choice

"Float" is the term given to

• A) differences between the cash balance and the balance of cash plus marketable securities.
• B) differences between the cash balance in the ledger and the funds available in the firm's checking account.
• C) the period between the date an invoice is received and the date on which it must be paid.
• D) the practice of deliberately delaying payments beyond the due date.

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Definitions:

Market Risk Premium

The additional yield investors anticipate from maintaining a portfolio with inherent market risk rather than opting for assets free of risk.

Required Rate of Return

The minimum annual percentage return investors expect or demand from an investment, considering the risk involved.

Risk Averse

A description of an investor or investment philosophy that prioritizes the minimization of risk over potential returns.

Risk-free Rate

The theoretical rate of return on an investment with no risk of financial loss, typically represented by government bonds.