Which of the following statement is true a. Gold generally provides a hedge against inflation over long periods of time b. Capital market is the market for short and long-term fixed income securities c. Investment in real estate is liquid d. Money market is the market for short and long-term fixed income securities

Q: Securities exchanges create efficient markets that do all of the following EXCEPT

A: Because there are primary markets and Secondary Markets which investors have to take the opportunity…

Q: assets that you add it to ii. The amount of a portfolio's risk that is diversified away depends on…

A: Step 1 Unsystematic risk refers to a general risk to the company or industry. Informal risk is also…

Q: Which of the following statements is correct? (explain your answer) Shorter term securities have…

A: Reinvestment risk is risk of investment of coupon payment .

Q: A stock’s beta is a key input to hedging in the equity market. A bond’s duration is key in…

A: The volatility of the stock relative to the changes in the market is measured by beta. Suppose the…

Q: hich of the following is correct?   Transactions within the spot market can be used to mitigate and…

A: Hedging can be done by using forward and future and option market and can be used to mitigate spot…

Q: Unsystematic risk is * a.the risk associated with movements in securities prices B.higher when…

A: Risk is referred as uncertainty or loss. Financial risk is referred as the variability of actual…

Q: ith correct answer. Interest rate risk is the potential for investment (....loss/gain..........).…

A: There is an inverse relationship between bond prices and interest rates. Bond pays fixed coupon…

Q: Which of the following is NOT an external method of interest rate risk management? *       A. Using…

A: An interest rate risk is the risk of negative affected of the value of an investment by unexpected…

Q: According to the Capital Asset Pricing Model (CAPM), fairly-priced securities have

A: It is an equation derived from the security market line that attempts to explain the relationship…

Q: Which of the following is considered the highest risk investment type? A. Bonds B. Stocks C. Mutual…

A: Bonds are the debt securities issued by corporations to raise money in exchange of fixed interest…

Q: securities in an inefficient market are in equilibrium and fairly priced in the sense that the price…

A: Market can be efficient and inefficient

Q: Explain how alternative investments can act as a hedge against inflation.

A: Alternative Investments:  Stocks, bonds are financial instruments that fall under the category of a…

Q: explain the statement"The money market is neccessary but not sufficinet for the liduiidity of…

A: Money market is an instrument used to provide flow of short term funds in the economy. It consist of…

Q: An efficient capital market is best defined as a market in which security prices reflect which one…

A: Efficient Capital Market: It is the market where all  available information is reflected in asset…

Q: I. An increase in the perceived riskiness of investments would cause a movement up along the supply…

A: Liquidity is how quick an individual or a company is able to get cash in hand. Liquidity helps in…

Q: Which of the following most accurately describes fundamental analysis? a. Makes use of trend chart…

A: Fundamental analysis involves study and analysis of company fundamentals and value of company on…

Q: Which one of the following is the hypothesis that securities markets are efficient?   Multiple…

A: The security market is a subset of the larger financial market in which securities can be bought and…

Q: Held-to-maturity investments applies only to debt securities because​ ________.   A. the…

A: Held to maturity investment applies only to debt securities because the investor tends to hold the…

Q: premium

A: Introduction: Nominal interest rate can be defined as the interest rate before taking the effects of…

Q: According to the efficient market, which of the following are not true?   Select one: securities…

A: Efficient market hypothesis is a hypothesis that states that markets are efficient and returns…

Q: A primary market is: -the financial market where new security is sold for the first time. -the…

A: Primary market is a type of capital market where securities will be issued for first time. The…

Q: An increase in the riskiness of financial securities results in a_______ in the supply of loanable…

A: The riskiness of financial securities or financial risk is defined as the threat of losing the money…

Q: The measure of risk is called:   Group of answer choices The rate provided by short term government…

A: Risk is defined in financial terms as the probability or uncertainty that an outcome or an…

Q: hich of the following is not an advantage of a repurchase agreement (repo) market? a.…

A: A repurchase agreement (repo) is a form of short-term financial support for government mortgage…

Q: The number of futures contracts that a bank will need in order to fully hedge its overall interest…

A: Note: Since you have posted multiple independent questions in the same request, we will solve the…

Q: In which of the following markets "new issues" of long term securities are bought and sold?

A: In foreign exchange market, currencies are bought and sold. In secondary market, buying and selling…

Q: The efficient market hypothesis assumed that market is perfect in which securities are typically in…

A: An efficient market hypothesis (EMH) used to the financial market used to have an efficient, which…

Q: Which of the following are characteristics of money market securities? I. Long term maturities.…

A: Money market securities refers to interest bearing securities that are highly liquid and highly…

Q: Which of the following about Treasuy inflation protected securities is NOT true:

A: A treasury inflation protected security is one which protects the investor from rising inflation.…

Q: How are derivatives valued on the balance sheet? How is the adjustment to fair value recorded…

A: Derivatives: This is the financial instrument used  for managing risk and safeguard the risk created…

Q: a) Discuss the concepts of complete capital markets, pure (Arrow-Debreu) securities, and pure factor…

A: Financial instruments are the legal documents which have some monetary value. It can be either in…

Q: Which of the following types of investment carries the greatest risk? O Stocks O Bonds O Mutual…

A: Option Explanation Stock Iit is risky because it depends on movement of market. Bonds Bonds have…

Q: summarize the key features of the markets with the guide questions below. Features Equity Market…

A: The stock market is a location where traders may purchase and sell equities, investors can invest in…

Q: ______ is a method of evaluating securities by identifying a stock trend such as prices and volume…

A: Financial securities are the financial assets that are traded in the financial markets. Financial…

Q: Classify each of the following in terms of their effect on interest rates (increase or decrease): I.…

A: Interest rates Interest rate is referred to as the amount a lender charges to a borrower and is a…

Q: State whether the following statements are true or false.     Efficient Market Hypothesis means…

A: Efficient market hypothesis (EMH) states that the prices in the market reflects all the available…

Q: Identify which refers to the relationship of interest and time of maturity of securities.

A: interest refers to the return that an investor gets for investing his money in the security or…

Q: Secondary Market can be best described in which of the following statement? a. It is a market for an…

A: Stock market there are buying and selling of securities are done depending on demand and supply of…

Q: Choose the best answer 1.) A place or system that primarily allows trading of financial assets with…

A: In finance, there are various types markets which are used for different purposes. These markets…

Q: The risk premium for an investment: Answer a. Is negative for U.S. Treasury Securities b. Is zero…

A: A risk premium is the investment return an asset is expected to yield in excess of the risk-free…

Q: Capital market securities are usually more widely traded than shorter-term securities and tend to…

A: There are various types of markets capital market or short term securities

Q: One of the basic promises of security analysis, and in particular fundamental analysis is that A- a…

A: The stock analysis can be done in two forms.  Fundamental analysis.  Technical analysis.