The two types of investments that provide the highest and lowest yields in the Ibbotson

study of Stocks, Bonds, Bills and Inflation are

A. Large company stocks; U.S. treasury bills

B. Large company stocks; Long-term government bonds

C. Small company stocks; U.S. Treasury bills

D. Small company stocks; preferred stock

E. U.S. treasury bills; small company stocks

1 Answer

Answer :

C. Small company stocks; U.S. Treasury bills

Related questions

Description : In case of rising prices (inflation), LIFO will: (a) provide lowest value of closing stock and profit (b) provide highest value of closing stock and profit (c) provide highest value ... but lowest value of profit (d) provide highest value of profit but lowest value of closing stock

Last Answer : (a) provide lowest value of closing stock and profit

Description : In case of rising prices (inflation), FIFO method will: (a) provide lowest value of closing stock and profit (b) provide highest value of closing stock and profit (c) provide highest value ... stock but lowest value of profit (d) provide highest value of profit but lowest value of closing stock

Last Answer : (b) provide highest value of closing stock and profit

Description : Repo transactions are allowed in (a) Government securities / Treasury bills of all maturity ; (b) State Government securities (c) PSU bonds/Private corporate bonds ; (d) All the three

Last Answer :  (d) All the three 

Description : A portfolio comprises of two stocks A and B. Stock A gives a return of 8%and stock B gives a return of 7%. Stock A has a weight of 60% in the portfolio. What is the portfolio return? A. 9% B. 11% C. 10% D. 8%

Last Answer : D. 8%

Description : The main source of long-term credit for a business unit is - (1) sale of stocks and bonds to the public (2) borrowing from banks (3) loans from the Government (4) deposits from the public and financial institutions

Last Answer : (1) sale of stocks and bonds to the public Explanation: Companies issue securities called stocks and bonds to raise necessary capital which funds the company's daily operations and growth. ... issuing stock to owners called stockholders doesn't require the company's repayment of investor principal.

Description : The main source of long-term credit for a business unit is (1) sale of stocks and bonds to the public (2) borrowing from banks (3) loans from the Government (4) deposits from the public and financial institutions

Last Answer : sale of stocks and bonds to the public

Description : Which of the following types of company will have the lowest level of investment in  working capital to finance? A. Water suppliers B. Supermarkets C. Chemical manufacturers D. Ship builders E. Car

Last Answer : B. Supermarkets

Description : Treasury bills are issued in India by ______ A. RBI B. State Government C. Government of India D. SEBI

Last Answer : C. Government of India Explanation: Treasury bills (T-bills) offer short-term investment opportunities, generally up to one year. They are thus useful in managing short-term liquidity. At present, the ... , 91-day, 182-day and 364-day. There are no treasury bills issued by State Governments.

Description : Consider these two investment strategies: Strategy is the dominant strategy because . A. 1, it is riskless B. 1, it has the highest reward/risk ratio C. 2, its return is at least equal ... sometimes greater D. 2, it has the highest reward/risk ratio E. both strategies are equally preferred

Last Answer : C. 2, its return is at least equal to Strategy 1 and sometimes greater

Description : In corporate costs, cost incurred to finance construction of new equipment are classified as A. treasury costs B. discretionary costs C. human resource management costs D. corporate administration costs

Last Answer : A. treasury costs

Description : As a general rule, stock issues are used to: a. Protect you from getting a loan from Big Al. b. Fund the purchase of more market share. c. Fund long term investments in capacity and automation. d. Fund yearly sales and promotional budgets. e. All of the above.

Last Answer : c. Fund long term investments in capacity and automation.

Description : I`m 67 yrs.old and still work part time . Can i take my 401k out from my company and buy treasury bonds and not lose any of my money?

Last Answer : Most 401k plans have penalties for early withdrawal.

Description : Ambiguity introduced by way by which organization finances its investments is A. country risk B. liquidity risk C. financial risk D. business risk

Last Answer : C. financial risk

Description : To assist in budget control, it is suggested that the estimate occur at the _____ ____ ______  level of the WBS 1. Highest  2. Lowest  3. Major work effort  4. Third

Last Answer : 2. Lowest

Description : Most favourable portfolio is proficient portfolio with the A. lowest risk B. highest risk C. highest utility D. least investment

Last Answer : C. highest utility

Description : Which statement about long-term investments is not true? a. They will be held for more than one year. b. They are not currently used in the operation of the business. c. They include investments in stock of other companies and land held for future use. d. They can never include cash accounts.

Last Answer : d. They can never include cash accounts.

Description : Capital needed for company activities cannot be acquired through: a. stocks and bonds. b. profits. c. current debt. d. arbitrarily firing employees. e. all of the above.

Last Answer : d. arbitrarily firing employees.

Description : When a corporate entity wishes to raise money from the market it can do that by issuing A. Treasury Bills B. Kisan Vikas Patra C. National Savings Certificate D. Commercial Papers E. None of the Above

Last Answer : D. Commercial Papers Explanation: Commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories and meeting short-term liabilities.

Description : Which of the following is subject to payment of Stamp Duty under Indian Stamp Act, 1899 (Central Act)? A. Commercial Paper B. Treasury Bills C. Certificate of Deposit D. Both (A) and (C) E. None of the Above

Last Answer : C. Certificate of Deposit Explanation: CD is subject to payment of Stamp Duty under Indian Stamp Act, 1899 (Central Act).

Description : Under a conservative financing policy a firm would use long-term financing to finance some of the temporary current assets. What should the firm do when a "dip" in temporary current assets causes ... C. Use the excess funds to repurchase common stock. D. Purchase additional plant and equipment.

Last Answer : B. Invest the excess long-term financing in marketable securities.

Description : Identify which technique will not help a company to optimise its working capital cycle. A. Offering discounts for early payment by debtors B. Using cash management models to optimise the level of ... order quantity model to stock management E. Adopting the use of just-in-time stock management

Last Answer : B. Using cash management models to optimise the level of cash held

Description : Price movement between two Information Technology stocks would generally have a  co-variance. A. zero B. positive C. negative

Last Answer : B. positive

Description : Total risk for common stocks is: A. the sum of systematic risk and diversifiable risk. B. measured by beta. C. the sum of market risk and systematic risk. D. the sum of diversifiable risk and unsystematic risk

Last Answer : A. the sum of systematic risk and diversifiable risk.

Description : How To Buy Treasury Inflation Protected Securities (TIPS)?

Last Answer : One of the better choices for those investors seeking income for their portfolio is the government's Treasury Inflation Protected Securities, otherwise known as TIPS. These securities seek to provide a ... . The most straightforward way would be to buy them directly from the government. The gover

Description : Which of the following is not a „Money Market Instrument‟? A. Treasury Bills B. Commercial Paper C. Certificate of Deposit D. Equity Shares

Last Answer : D. Equity Shares Explanation: There are several money market instruments, including treasury bills, commercial paper, bankers‘ acceptances, deposits, certificates of deposit, bills of exchange, repurchase agreements, federal funds, and short-lived mortgage-, and asset-backed securities.

Description : Q6 All cheques , Bills etc preferable at a treasury for payment being nonnegotiable instruments can be endorsed only once . The above said statement is a. True b. False

Last Answer : a. True

Description : In stocks, when they ask for U.S. company symbol, do you know any?

Last Answer : Try going to MSN or any other site and searching for the company you are interested in. It will default to the symbol for you. For example, White Mountains’ symbol is WTM. And above all, follow @avalmez advice… at least for awhile.

Description : In the stock-price beta estimation for the Coca-Cola Company, the dependent variable is the: A. return on Coca-Cola. B. price of Coca-Cola stock. C. return on the S&P 500. D. value of the S&P 500 Index.

Last Answer : A. return on Coca-Cola.

Description : A greater portion of returns from conventional debt investments is generally through a. Capital gain b. Interest income c. Dividend income d. Inflation

Last Answer : a. Capital gain

Description : Batch process is preferred over continuous process, when the (A) Product yields and quality cannot be achieved in continuous process, because of long residence time (B) Sales demand of product is not steady (C) Same ... be used for several processes of the same nature (D) All (A), (B) & (C)

Last Answer : (D) All (A), (B) & (C)

Description : Batch process is preferred over continuous process, when the (A) Product yields and quality cannot be achieved in continuous process, because of long residence time (B) Sales demand of product is not steady (C) Same ... cannot be used for several processes of the same nature (D) All (A), (B) & (C)

Last Answer : (B) Sales demand of product is not steady

Description : Real rate of return is equal to:  A. Nominal Rate × Inflation Rate,  B.Nominal Rate ÷ Inflation Rate,  C. Nominal Rate - Inflation Rate,  D. Nominal Rate + Inflation Rate

Last Answer : B.Nominal Rate ÷ Inflation Rate,

Description : If there is no inflation during a period, then the Money Cash flow would be equal to  A. Present Value,  B.Real Cash flow,  C. Real Cash flow + Present Value,  D. Real Cash flow - Present Value

Last Answer : B.Real Cash flow,

Description : )Which of the following fit the category of external risks? 1. Project delays, budget under-runs, movement of city utilities  2. Regulatory, currency changes, taxation  3. Natural disasters, ... , design, social impact  5. Political unrest, budget overruns, size and complexity of the project

Last Answer : 2. Regulatory, currency changes, taxation

Description : Cost controls can be best described by which of the following? 1. The process of developing the future trends along with the assessment of probabilities,  uncertainties, and inflation that  could ... of gathering, accumulating, analyzing, reporting, and managing the costs on  an on-going basis.

Last Answer : 4. The process of gathering, accumulating, analyzing, reporting, and managing the costs on  an on-going basis.

Description : Cost budgeting can be best described by which of the following? 1. The process of developing the future trends along with the assessment of probabilities,  uncertainties, and inflation that  could ... of gathering, accumulating, analyzing, reporting, and managing the costs on an on- going basis

Last Answer : 3. The process of establishing budgets, standards, and a monitoring system by which the  investment cost of the project can be measured and managed

Description : Open market operations of RBI refer to buying and selling of - (1) Commercial bills (2) Foreign exchange (3) Gold (4) Government bonds

Last Answer : (4) Government bonds Explanation: OMOs are the market operations conducted by the Reserve Bank of India by way of sale/ purchase of Government securities to/ from the market with an objective to ... are tight, the RBI will buy securities from the market, thereby releasing liquidity into the market.

Description : Open market operations of RBI refer to buying and selling of (1) Commercial bills (2) Foreign exchange (3) Gold (4) Government bonds

Last Answer : Government bonds

Description : If the federal reserve sells 40000 in treasury bonds to a bank at 5 interest what is the immediate effect on the money supply?

Last Answer : Feel Free to Answer

Description : can you buy us treasury bonds?

Last Answer : You can buy US Treasury Bonds at most financial institutions, such as your bank or credit union. Many companies offer Payroll Savings Plans. Or you can visit www.savingsbonds.gov and start an account and buy directly from the US Government.

Description : I can't find the treasury Bonds my parents gave me several years ago. My parents are now deceased. What can I do.?

Last Answer : Now the issue is about the long term treasury bonds these kinds of issues can be assisted by the following site http://www.marketoracle.co.uk/Article5403.html

Description : What is the currency deposit ratio (cdr)? a) ratio of money held by the public in currency to that of money held in bank deposits b) ratio of money held by public in bank deposits to that of money ... ratio of money held in demand drafts to that of money held in treasury bonds d) none of the above

Last Answer : a) ratio of money held by the public in currency to that of money held in bank deposits

Description : Which among the following is considered to be the most liquid asset? a) Gold b) Money c) Land d) Treasury bonds

Last Answer : b) Money Liquid assets are those assets that can be exchanged most readily with minimum number of obstacles and minimum time.

Description : Hofstede found that some countries have a long-term orientation while others focus on the short term. His results mean that: A. US business would be happy to invest in nuclear power and space ... from ten-year investment projects. D. Indian business is impatient for a return on its investments.

Last Answer : British businesses prefer investments with a quick return.

Description : If each of us donated $10 dollars to the U.S. Treasury, would that solve America's debt problem?

Last Answer : Even if it did, not everyone would do it. Did you hear somewhere that that’s the amount that would get us out of debt? Arent’ we billions and gazillions in debt? Would the amount of $10 each really total that?

Description : which of these federal policing agencies is part of the u.s. department of the treasury? -General Knowledge

Last Answer : The Secret Service is part of the U.S. Department of the Treasury.

Description : Which of the following will result in the highest interest rate: a. Issuing Bonds. b. Issuing Stock. c. Current Debt. d. Emergency Loan. e. Both a combination of a and b.

Last Answer : d. Emergency Loan.

Description : Traditional Work Breakdown Structures tend to  a. focus on the design of the system as oppose to the needs of the current phase and  iteration  b. force too many levels of detail early on for large ... project and difficult to compare across projects  d. all of the above  e. none of the above

Last Answer : d. all of the above