Which One of the Following Is NOT a Wise Guideline

question 11

Multiple Choice

Which one of the following is NOT a wise guideline for globally managing the marketable securities portfolio of a multinational corporation?

• A)concentrate the instruments in the portfolio to one growth industry to maximize the yield for a given level of risk
• B)review the portfolio daily to decide which securities should be sold
• C)carefully consider opportunities for covered interest arbitrage
• D)tailor the maturity of the investment to the firm's projected cash needs

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Definitions:

Checks and Balances

A system in which different parts of an organization or government have powers that affect and control the other parts, preventing any one part from becoming too powerful.

Equal Protection Clause

The provision in the Fourteenth Amendment to the U.S. Constitution that guarantees that no state will “deny to any person within its jurisdiction the equal protection of the laws.” This clause mandates that state governments treat similarly situated individuals in a similar manner.

Suspect Trait

A characteristic or feature in a person that may cause them to be viewed with suspicion or as a potential culprit in a criminal investigation.

Compelling Government Interest

A test of constitutionality that requires the government to have compelling reasons for passing any law that restricts fundamental rights, such as free speech, or distinguishes between people based on a suspect trait.