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Why Is an Analysis of the Pattern and Variability of the Investing

Question 2

Multiple Choice

Why is an analysis of the pattern and variability of the investing company's cash flows so important as part of the short-term investment process?


A) it guides dollar amounts and maturities of investments
B) it insures that state and federal regulations are met
C) it protects the investment manager against shareholder lawsuits
D) it ensures that the company's brokers and banks do not trick the company into making overly risky investments

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