Question: Describe the key inputs used when developing a short-term investment policy? What is the chief concern associated with corporate short-term investment policies? Define the following:

Describe the key inputs used when developing a short-term investment policy?

What is the chief concern associated with corporate short-term investment policies?

Define the following:

a) Default risk

b) Liquidity risk

c) Reinvestment rate-risk

d) Price risk

e) Event risk

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