Keeping your funds in liquid assets is riskier than keeping them in liquid assets and therefore investors require a higher expected rate of return on liquid assets.

Consider the following statement: "The estimation of the Free Cash Flow to the Firm (FCF) considers investment decisions but ignores financing decisions." Is this statement true or false? Explain your answer.

1.What are the benefits and costs to an FI of holding large amounts of liquid assets? Why are Treasury securities considered good examples of liquid assets? 2. What are the primary methods that insurance companies can use to reduce their exposure to liquidity risk?

1. Which of the following statements are true?a. The value of any investment is based on the cash flows it is expected to generate in the future.b. Investors are not generally risk averse.c. Uncertain cash flows are preferred to certain cash flows.d. All of the above are true.e. None of the above are true. 2. A basic knowledge of finance will help you with your personal investments by helping you understanda. how to accurately predict changes in the short-term interest rates.b. how to determine the optimal dividend policy for each firm.c. how to determine which technology is most likely to be accepted by consumers.d. how to review companies and industries to determine their prospects for future growth and therisk inherent in those companies and industries.e. how to predict the growth in sales for the firm.  3. Which of the following events would make it more likely that a company would choose to call itsoutstanding callable bonds?a.A reduction in market interest rates.b.The company's…

List some common cash outflows from capital investments.

What might RR do to reduce its target cash balance without harming operations?

Your friend suggests that a good way to study whether stock prices are in- formationally efficient is to analyze whether mutual fund managers can earn abnormal returns. Should her study examine the performance of fund managers gross of expenses or net of expenses (i.e., the fund return minus expenses)?

If we say that a non-cash asset has high liquidity we are indicating that The assets can be converted to cash quickly The assets can be converted to cash at or near fill value The asset can be converted to cash with a large discount

any risk attached to a financial asset should not be considered when making an investment decision because all financial assets are risky. true or false?

What is not an advantage of a Treasury (T) Note?   Select one: a.   Extremely liquid security.   b.   Loss of potential purchasing power (inflation > yield).   c.   An investor’s capital is secure.   d.   Better returns than a bank savings account.