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- The purpose of the Securities Act of 1933 is to regulate a security's investment price. True FalseMarketable securities are liquid financial instruments that can be quickly converted into cash at a reasonable price. Is it True or False?Which of the following about Treasuy inflation protected securities is NOT true: O Treasury security that is indexed to inflationO Protect investors from the negative effects of inflationO Considered a low-risk investmentO Traded in money market
- If securities x and y are below the security market line and securities k and l are above market line, which security would you buy? And why?Why are U.S. Treasury bonds not completely riskless?All of the following could be considered a financial security with the exception of: Treasury bond preferred stock inventory banker’s acceptance
- Why are derivatives considered riskier than other financial instruments?Which of the following fixed income securities has the highest level of risk? Which one has the highest level of liquidity? a. treasury bonds b. agency bonds c. corporate bonds d. municipal bondsAre securities that provide for a sinking fund more or less risky from the bondholder’sperspective than those without this type of provision? Explain.
- Why are the bonds treated as a conservative investment? Do you think the treasury bills are risk-free assets?From the perspective of the treasury professional, which of the following is a type of market risk but is NOT a type of financial risk? Commodity price risk Equity price risk Interest rate risk Foreign exchange (FX) riskIllustrate the effect that market interest rates have on the price of pass-through securities?