Question

The level of liquid assets that should be invested in marketable securities depends on several factors. This includes all except which of the following?
a. The variability of the firm's cash flows
b. Transaction costs involved in buying and selling the securities
c. Seasonal cash requirements d. Interest to be earned over the expected holding period

Answer 1

Answer:

c.

Explanation:

Based on the information provided within the question it can be said that the exception of the answers provided are seasonal cash requirements. This refers to the amount of cash you or the company needs to pay for unique expenses during a specific season. Which is not a factor when deciding what should be invested in marketable securities.