6.Max Co is a large multinational company which expects to have a $10m cash deficit in...

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6.Max Co is a large multinational company which expects to have a $10m cash deficit in one month's time. The deficit is expected to last no more than two months. Max Co wishes to resolve its short-term liquidity problem by issuing an appropriate instrument on the money market. Which of the following instruments should Max Co issue? Commercial paper Interest rate futures Pick 1 option Corporate loan notes Treasury bills 7. In relation to capital markets, which of the following statements is true? Pick 1 option Weak form efficiency arises when investors tend not to make rational investment decisions Research has shown that, overtime, share prices appear to follow a random walk The return from investing in larger companies has been shown to be greater than the average return from all companies Allocative efficiency means that transaction costs are kept to a minimum 6.Max Co is a large multinational company which expects to have a $10m cash deficit in one month's time. The deficit is expected to last no more than two months. Max Co wishes to resolve its short-term liquidity problem by issuing an appropriate instrument on the money market. Which of the following instruments should Max Co issue? Commercial paper Interest rate futures Pick 1 option Corporate loan notes Treasury bills 7. In relation to capital markets, which of the following statements is true? Pick 1 option Weak form efficiency arises when investors tend not to make rational investment decisions Research has shown that, overtime, share prices appear to follow a random walk The return from investing in larger companies has been shown to be greater than the average return from all companies Allocative efficiency means that transaction costs are kept to a minimum

Answer rating: 100% (QA)

6 Treasury bills would be the ideal instrument for Max Co to address its shortterm liquidity challen... View the full answer