Investing

Which of the following investment portfolios is most liquid?

Equities (stocks), bonds (fixed-income securities), cash or marketable securities, and commodities are the most liquid asset classes and, therefore, the most quoted asset classes.

As many you asked, which of the following investments portfolios is least liquid? Liquidity is the efficiency or ease of an asset or investment to convert it into ready cash without affecting its intrinsic value. Land and real estate are considered the least liquid investments as they can take several weeks or months to sell them.

Best answer for this question, which of the following investment portfolios is most stable quizlet? Which of the following investment portfolios is MOST stable? The best answer is C. Balanced funds are composed of a balance of common stocks (market cycle sensitive) and fixed income securities (interest rate sensitive).

Additionally, when making a recommendation of corporate commercial paper to a customer which risk is the most important consideration? When making a recommendation of a 10 year Treasury Note to a customer, the MOST important risk consideration is: market risk, risk of rising interest rates forcing the price of a bond to drop, with longer maturity issues dropping fastest. 10-Year Bonds have a fairly long term maturity and are subject to this risk.

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You asked, what are the 7 asset classes?

  1. Domestic Equities.
  2. Global Equities.
  3. Currency.
  4. Bond/Fixed Income.
  5. Commodities:
  6. Real Estate.

Cash. What is the most liquid asset? It’s cash. Having cash on hand is by far the most liquid investment.

Which is the most liquid asset?

Liquidity describes your ability to exchange an asset for cash. The easier it is to convert an asset into cash, the more liquid it is. And cash is generally considered the most liquid asset. Cash in a bank account or credit union account can be accessed quickly and easily, via a bank transfer or an ATM withdrawal.

Which of the following investment portfolios is most liquid quizlet?

Terms in this set (25) Which of the following investments is the most liquid? Answer: B. Money market funds are the most liquid investment.

Which customer’s portfolio is most susceptible to a cyclical economic downturn?

Which customer’s portfolio is MOST susceptible to a cyclical economic downturn? In a cyclical economic downturn, the hardest hit asset group is stocks. Since earnings fall greatly in a downturn, so do stock prices. Also hard hit are speculative grade bonds, which can default.

Which of the following is most susceptible to interest rate risk?

Which of the following are MOST susceptible to interest rate risk? UTILITY COMMON STOCK AND PREFERRED STOCK. Interest rate risk is the risk that if market interest rates rise, securities prices will fall.

Which customers portfolio is most susceptible to interest rate risk?

Long term maturities and low coupon bonds are most susceptible to this risk. Short term maturities and high coupon bonds are most susceptible to this risk. Rising interest rates will cause outstanding bond prices to fall. Lower interest rates will cause outstanding bond prices to fall.

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Which asset classes have the greatest reinvestment risk?

Which asset classes have the greatest reinvestment risk? The best answer is C. Reinvestment risk is associated with fixed income securities that make periodic payments to investors. Bond interest payments are made every 6 months, and the investor that receives these will “reinvest” them into additional bond holdings.

What is the risk of commercial paper?

Commercial paper is also a low-risk asset—one that carries little risk of default—because the typical issue has such a short maturity and is the liability of a high-quality firm.

What types of investment assets make up a portfolio?

A portfolio is a collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange traded funds (ETFs). People generally believe that stocks, bonds, and cash comprise the core of a portfolio.

What are the 4 main asset classes?

  1. Cash and cash equivalents. Many investors hold cash as a way of maintaining liquid assets or simply providing safety and comfort in volatile times.
  2. Fixed income (or bonds)
  3. Real assets.
  4. Equities.

Are stocks liquid assets?

Stocks and marketable securities, which are considered liquid assets because these assets can be converted to cash in a relatively short period of time in the event of a financial emergency. U.S. Treasuries and bonds.

Which is the most liquid asset quizlet?

Cash is the most liquid of all assets.

Which of the following is least liquid asset?

Land, real estate, or buildings are considered the least liquid assets because it could take weeks or months to sell them.

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Which accounts are most liquid?

Liquidity in finance by the book is how quickly any asset can be changed in to hard cash. Therefore, any account having only cash can be said as the most liquid. For instance, a checking or a saving account could be considered the most liquid accounts.

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