Question

In: Finance

14. Which of the following is not a money market security? a. U.S. Treasury bill b....

14. Which of the following is not a money market security?

a. U.S. Treasury bill

b. 6-month maturity certificate of deposit

c. common stock

d. All of the options

15. What type of portfolio construction starts with selecting attractively priced securities?

a. Bottom-up

b. Top-down

c. Upside-down

d. Side-to-side

16. The _____________ of a corn futures contract has the __________ to deliver the commodity at the expiration of the contract.

a. Seller, right

b. Buyer, right

c. Seller, obligation

d. Buyer, obligation

Expert Solution

14) Money market security are security which are very liquid and of short term. Common stock is not a money market security.

Hence The correct answer is option C i.e. common stock

15) Bottom up portfolio construction starts with selecting attractively priced securities, whereas top down starts with economy first then selecting security.

Thus the correct answer is option a. Bottom-up

16) The seller of a corn futures contract has the obligation to deliver the commodity at the expiration of the contract.

Since it's a future contract, there is obligation not right and seller has to deliver the commodity on expiration

The correct answer is option c. Seller, obligation

jeff jeffy answered 2 years ago

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