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Homework answers / question archive / Given an upward slpoing yield curve, the marketable securities in a company's porfolio, assumed to be held for emergencies, should: Answer Options: 1
Given an upward slpoing yield curve, the marketable securities in a company's porfolio, assumed to be held for emergencies, should:
Answer Options:
1. consist mainly of short-term Tearusy bills to minimize rate risk
2. consist mainly of long-term Tearusry bonds to minimize interest rate risk
3. consist mainly of short-term securities because they pay higher rates
4. consist mainly of long-term securities because they pay higher rates
Given an upward slpoing yield curve, the marketable securities in a company's porfolio, assumed to be held for emergencies, should: consist mainly of long-term Tearusry bonds to minimize interest rate risk.
option 2 is correct.
