A share of Ford Motor Company stock is an example of: A a financial instrument without risk. B a non-standardized financial instrument since their prices can differ over time. C a standardized financial instrument. D non-standardized financial instrument.
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Step 1: Stocks are traded on exchanges and have standardized features, such as the number of shares per company. Show more…
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description financial income backed by the u.s government these financial instruments are short-term debt obligations with a maturity or less than the one year. they are considered risk-free investment issued by money-centered financial, firm's, these short-term ,medium-term, insured debt instruments pay higher interest than a regular saving account. they are low-risk instruments and low returns these financial instruments are investments that buy such short-term debt instruments as Treasury bills(T-bills), certificates of deposits (CDs) and commercial paper.they can be easily liquidated issued by corporation, these financial instruments give their holders a class ownership in a company. they are riskier than bonds but less risky than the general class of ownership. which of the following instruments are traded in the capital markets
Breanna O.
You have $\$ 1,000$ that you can invest. If you buy Ford stock, you face the following returns and probabilities from holding the stock for one year: with a probability of 0.2 you will get $\$ 1,500$; with a probability of 0.4 you will get $\$ 1,100$; and with a probability of 0.4 you will get $\$ 900 .$ If you put the money into the bank, in one year's time you will get $\$ 1,100$ for certain. a. What is the expected value of your earnings from investing in Ford stock? b. Suppose you are risk-averse. Can we say for sure whether you will invest in Ford stock or put your money into the bank?
Which of the following characteristics does not describe a stock? A. Certificate of ownership issued B. Money earned from coupon rate C. No guarantee you will get your money back D. No maturity date
Benjamin D.
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