The marketable securities held in firm portfolio

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Reference no: EM131548036

Which of the following statement completions is CORRECT? If the yield curve is upward sloping, then the marketable securities held in a firm's portfolio, assumed to be held for emergencies, should

A. consist mainly of long-term securities because they pay higher rates.

b. consist mainly of short-term securities because they pay higher rates.

c. consist mainly of U.S. Treasury securities to minimize interest rate risk.

d. consist mainly of short-term securities to minimize interest rate risk.

e. be balanced between long- and short-term securities to minimize the adverse effects of either an upward or a downward trend in interest rates.

Reference no: EM131548036

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