Below are some additional exercises that will help you prepare for the exam. Note that these are
not necessarily indicative of the actual exam questions, they are only to help you in the
1) In March 2003, the U.S. Securiti
Chapter 7 Financial instruments
Discuss the concept of equity risk and how it is useful in determining
whether a financial instrument is a financial liability or an equity
instrument of the issuer.
Equity risk refers to the extent