QUESTION 20
Determine whether each of the following statements regarding securities are true or false:
Statement 1: Mutual funds are usually organized as limited partnerships.
Statement 2: Asset-backed securities pool different assets including cash from various investors to create a portfolio of securities.
Statement 3: ETFs and ETNs are open-ended funds that investors can trade among themselves in secondary markets.
a. True, false, true
b. False, true, true
c. False, false, true
c. False, false, true
Statement 3: ETFs and ETNs are open-ended funds that investors can trade among themselves in secondary markets.
QUESTION 20 Determine whether each of the following statements regarding securities are true or false: Statement...
QUESTION 18 How many of the following statements regarding mortgage pass-through securities are false? Statement 1: Weighted average coupon rate is the coined term for the stated rate of this type of securities. Statement 2: Prepayment speed of the pool of residential mortgages has a monthly and annualized measurement. Conditional prepayment rate is the annualized measure while the unconditional prepayment rate is the monthly measure. Statement 3: The classification of mortgage between conforming and nonconforming depends on whether it satisfied...
1. Which of the following statements is true? A. Pension funds are like mutual funds that trade on exchanges. B. Life insurance companies typically underwrite corporation's initial public offering of stock. C. Commercial banks are where people usually have their checking and saving accounts. D. Investment banks specialize in mortgage lending. 2. Which of the following statements is true? A. Corn is an example of a physical asset. B. Money market instruments have original maturities greater than 1 year. C....
Determine whether each statement regarding speed or velocity is true or false False True at
True/False: Decide whether the following statements are true or false. If a statement is true, just state that it is true. If a statement is false, state that it is false and restate it so that it becomes an economically meaningful true statement. (15P, 3P each) [Hint: You need to remain in the context of the original statement. So don’t change it into a different true statement such as, “Janet Yellen was the former Chair the US Federal Reserve”]. a....
All of the following statements regarding diversification are correct EXCEPT? A. diversification is not enhanced by the addition of foreign securities to a portfolio because they are always highly correlated with domestic equity. B. to minimize interest rate risk, one could diversify within the fixed-income asset category by staggering bond maturity dates. C. to minimize business risk, one could allocate among a number of asset categories and purchase mutual funds. D. to reduce liquidity risk, one would keep a sufficient...
Consider the following statements regarding NMR spectroscopy. Determine whether each each statement is true or false. Spin-spin splitting can occur over many bond lengths in a molecule. NMR spectroscopy requires a nucleus having non-zero electron spin. Shielding occurs when electrons near a proton are induced to circulate by the applied field. This electron field opposes the applied field. A typical value for the chemical shift of aromatic protons is 7.5.
QUESTION 12 10 points Save Answer Which of the following statements is/are false regarding Investment Banks: I.) Act as intermediaries between issuers of securities and investors. II.) Act as advisors to companies in helping them analyze their financial needs and find buyers for newly issued securities. III.) Similar to commercial banks, accept deposits from savers and retirees to fund their business. I and II Only ll Only I and III Only III Only QUESTION 13 10 points Save Answer True...
State whether each of the following statements is true or false. A disadvantage of issuing bonds is that it puts current shareholders at risk of losing full control of the 1 company. 2. 3. Financial leverage is when a company borrows at one rate and invests at a different rate. Bonds, like shares, may be bought by investors on organized securities exchanges. Convertible bonds are also known as callable bonds. The market rate is the rate investors demand for lending...
Indicate whether each of the following statements is true or false. Statement True False Two countries can gain from specialization and trade as long as they have different opportunity costs in the production of some goods. The gains from specialization and trade are based on absolute advantage. If a certain trade is good for one country, it must be good for the other country. Two individuals can benefit from trade even if neither has a comparative advantage in some activity. Workers in importing industries are...
question # 41 Indicate whether the following statement regarding internal control is true or false. Computer systems have eliminated the need for internal controls in business True or False True False