Which of the following statement completions is CORRECT? If the yield curve is upward sloping,...
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Accounting
Which of the following statement completions is CORRECT? If the yield curve is upward sloping, then the marketable securities held in a firm's portfolio, assumed to be held for emergencies, should
A.
consist mainly of long-term securities because they pay higher rates.
b.
consist mainly of short-term securities because they pay higher rates.
c.
consist mainly of U.S. Treasury securities to minimize interest rate risk.
d.
consist mainly of short-term securities to minimize interest rate risk.
e.
be balanced between long- and short-term securities to minimize the adverse effects of either an upward or a downward trend in interest rates.
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