All else equal, firms that hold greater amounts of short-term assets are considered more risky than firms that hold greater amounts of long-term securities.

Name: All else equal, firms that hold greater amounts of short-term assets are considered more risky than firms that hold greater amounts of long-term securities.
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Firms with more short-term assets are generally considered less risky because these assets can be quickly converted to cash, providing liquidity and flexibility.

All Else Equal, Firms That Hold Greater Amounts of Short-Term