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

Solutions

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 1 year ago

Next > < Previous

Related Solutions

Indicate whether the following instruments are examples of money market or capital market securities U.S. Treasury...

Indicate whether the following instruments are examples of money market or capital market securities U.S. Treasury bills Long-term corporate bonds Common stocks Preferred stocks Dealer commercial paper In two sentences identify and briefly compare the two leading stock exchanges in the United States today

Question 14 Compare the following securities: a treasury bill, FTSEALL Index (market portfolio), HighSpeed PLC (a...

Question 14 Compare the following securities: a treasury bill, FTSEALL Index (market portfolio), HighSpeed PLC (a telecommunication company stock), WaterField PLC (a utility company stock) and Metal-Gold PLC (a counter-cyclical company stock). You have collected annual stock prices of each of them and calculated the realized returns for 6 years. You report all realized returns in Table 1 below. year Treasury bill FTSEALL HighSpeed PLC WaterField PLC Metal-Gold PLC 2009 3% -4% -3% 5% 14% 2010 2% -2% 2% 6%...

A Treasury bill is a discount bond issued by the U.S. Treasury. Suppose that on January...

A Treasury bill is a discount bond issued by the U.S. Treasury. Suppose that on January 1, 2012, a one-year Treasury bill with $1000 face value is sold at $970.87. Investors expect that the inflation rate will be 2% during 2012, but at the end of the year, the inflation turns out to have been 1%. What is the nominal interest rate on the bill (measured as the yield to maturity), the expected real interest rate, and the actual real...

Treasury bills and Treasury notes are an investment security issued by the U.S. government. A Treasury...

Treasury bills and Treasury notes are an investment security issued by the U.S. government. A Treasury bill matures within one year and investors typically roll over the matured Treasury bill and purchase another Treasury bill the same day. Treasury notes have maturities of up to 10 years. You are considering investing $50,000 in a Treasury bill that you will renew every 6 months or invest in a Treasury note that you will hold until maturity. Your investment time frame is...

14. A(n) ____ is not an interest-bearing account. a. money market mutual fund b. money market...

14. A(n) ____ is not an interest-bearing account. a. money market mutual fund b. money market deposit account c. NOW account d. asset management account e. regular checking account 15. Commercial banks are insured by the a. Financial Deposit Insurance Association. b. Federal Depositors Assurance Corporation. c. Federal Deposit Insurance Corporation. d. Financial Deposit Insurance Company. e. Federal Demand Deposit Corporation. 16. ____ is a benefit of using credit. a. The ability to buy expensive goods while spreading the payments...

You have been offered a U.S Treasury Bill. The Face value of the bill is $10,000,...

You have been offered a U.S Treasury Bill. The Face value of the bill is $10,000, and the price is $8,925.The bill matures in 1/2 year. Compute the YTM using both discrete and continuously compounded interest on excel

A U.S. Treasury bill with 56 days to maturity is quoted at a discount yield of...

A U.S. Treasury bill with 56 days to maturity is quoted at a discount yield of 1.20 percent. Assume a $1 million face value. What is the bond equivalent yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places.) Bond equivalent yield %

Which of the following is an "off-balance-sheet commitment" that can lead to the creation of a money market security?

Which of the following is an "off-balance-sheet commitment" that can lead to the creation of a money market security?Multiple choice answersa) Interest rate swapb) letter of creditc) All of these statements are correct.d) Loan commitment.

For each of the following indicated the expected impact on the U.S. Treasury bond market. Be...

For each of the following indicated the expected impact on the U.S. Treasury bond market. Be certain to indicate what curve(s) is (are) shifting. a. An increase in domestic wealth b. An increase in default risk of Greek government bonds c. Rising inflationary expectations d. Strong forecasts for coming stock market price appreciation ( a booming stock market is forecast)

2. The bid price of a Treasury bill is ________. a. the price at which the...

2. The bid price of a Treasury bill is ________. a. the price at which the dealer in Treasury bills is willing to sell the bill b. the price at which the dealer in Treasury bills is willing to buy the bill c. greater than the ask price of the Treasury bill expressed in dollar terms d. the price at which the investor can buy the Treasury bill 3. Harold shorts Barnes Inc. at $84. A month later the company...

Subjects