nerdexam
AFP

CTP · Question #205

(Topic 3) A portfolio manager wishes to make a short-term investment. His investment policy requires that short-term investments be low risk and secured, have a fixed interest rate and be highly…

The correct answer is A. Asset-backed commercial paper. See the full explanation below for the reasoning.

Question

  • (Topic 3)

A portfolio manager wishes to make a short-term investment. His investment policy requires that short-term investments be low risk and secured, have a fixed interest rate and be highly liquid/redeemable prior to maturity. Which of the following should the manager choose?

Options

  • AAsset-backed commercial paper
  • BBank obligations
  • CCommercial paper
  • DGovernment treasury bills

How the community answered

(18 responses)
  • A
    83% (15)
  • B
    11% (2)
  • C
    6% (1)

Community Discussion

No community discussion yet for this question.

Full CTP Practice