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LOS c: Summarize the influence of investors' short- and long-term liquidity needs on portfolio management decisions. ffice ffice" />
Q1. Investors that desire to sacrifice liquidity in exchange for increased returns are least likely interested in which of the following types of bonds:
A) Treasury issues.
B) private placements.
C) smaller-sized issues.
Correct answer is A)
Some investors are willing to give up liquidity by investing in issues that possess relatively higher expected returns. Treasury issues do not fall into this category because they have relatively high liquidity, and little or no liquidity yield premium.
Q2. Investors that are willing to give up additional return in exchange for increased liquidity are least likely interested in which of the following types of bonds:
A) private placements.
B) large-sized issues.
C) Treasury issues.
Correct answer is A)
Many investors are willing to give up additional return in exchange for greater liquidity. Private placement issues typically have relatively low liquidity.
Q3. The ability to buy or sell quickly at a fair price is best described by which of the following terms?
A) Liquidity.
B) Efficiency.
C) Marketability.
Correct answer is A)
Liquidity is the ability to buy or sell quickly at a fair price.
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发表于 2009-3-6 09:23
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