Which of the following statements is correct? O A. Investors appreciate illiquid assets in their portfolios as they can easily sell them off to cover margin calls. O B. Liquid assets can quickly be converted into cash without changing prices too much. O C. Corporate bonds are among the most liquid financial assets as they trade at a very high frequency. O D. Liquid assets tend to be cheaper as investors are not willing to pay for their liquidity benefits.

Which of the following statements is correct? O A. Investors appreciate illiquid assets in their portfolios as they can easily sell them off to cover margin calls. O B. Liquid assets can quickly be converted into cash without changing prices too much. O C. Corporate bonds are among the most liquid financial assets as they trade at a very high frequency. O D. Liquid assets tend to be cheaper as investors are not willing to pay for their liquidity benefits.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 3MCQ

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