When selecting marketable securities, the company should always select securities with longer maturities if they offer higher yields.

Question

Quizplus · Accepted Answer

Selecting securities with longer maturities for higher yields without considering the company's liquidity needs, interest rate risk, and market risk can be imprudent. Shorter maturities might be more appropriate for maintaining liquidity and reducing risk.

When Selecting Marketable Securities, the Company Should Always Select Securities