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Allushta [10]
2 years ago
11

Each of the three categories of investments in debt and equity securities has similar accounting for all of the following transa

ctions except
a. recognition of dividend and interest income
b. initial recording of cost
c. recognition of unrealized holding gains and losses
d. recognition of realized gains or losses on sales
Business
1 answer:
Arlecino [84]2 years ago
7 0

Answer:

d. recognition of realized gains or losses on sales

Explanation:

In the case of trading securities, the non-realized gain and losses should be recorded in the income statement. So at the time when securties are sold so here the realized gain are distinct as compared to the afs and htm securties

So as per the given situation, the option d is correct

And, the same should be considered

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Answer:

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Explanation:

As per Capital Asset Pricing Model (CAPM),

Expected Rate Of Return = R_{f}  \ +\ B(R_{m} \ -\ R_{f} )

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The risk premium serves as a compensation for investing in risky securities instead of risk free securities.

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