Question: Highly liquid assets: I.increase the probability a firm will face financial distress. II. decrease the probability a firm will face financial distress. III. generally produce

Highly liquid assets:

I.increase the probability a firm will face financial distress.

II. decrease the probability a firm will face financial distress.

III. generally produce a high rate of return.

IV. generally produce a low, if any, rate of return.

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