Quiz #2 - Finals Flashcards
[MATCH] Money which is committed with an intention to earn a return over a period of time.
B. Investment
[MATCH] The additional return required based on the riskiness of the investments.
E. Risk Premium
[MATCH] Risks related to the nature of the company’s products and its operating strategy.
G. Business Risk
[MATCH] The risk created by choice of capital structure. Financing mix of the issuing company.
I. Financial Risk
[MATCH] Provides a low fixed rate of return but allows transactions from the account any banking day.
N. Savings Account
[MATCH] Provides a very low fixed rate of return but provides the convenience of issuing checks for payments.
K. Checking Account
[MATCH] Government securities that have maturities of one year or less-91 days, - 182 day, and 364-day securities.
O. Treasury Bills
[MATCH] Short-term instruments issued by the corporation for their immediate needs.
M. Commercial Papers
[MATCH] Investors earn through dividends and capital gains.
J. Equity Securities
[MATCH] The _______ investment, the higher is the required rate of return by the investor.
D. Riskier
[MATCH] Paid first as to dividends and have seniority over claims to assets.
H. Preference Shares
[MATCH] Computed by dividing the standard deviation of returns by the mean return.
F. Coefficient of Variation
[MATCH] The square root of variance.
C. Standard Deviation
[MATCH] Long-term debt instruments issued by corporations.
A. Corporate Bonds
[MATCH] Deposits with banks are insured with _______.
L. Philippine Deposit Insurance Corporation
