Which of the following statement completions is CORRECT? If the yield

curve is upward sloping, then the marketable securities held in a firm’s portfolio, assumed to be held for emergencies, should
a. consist mainly of U.S. Treasury securities to minimize interest rate risk.
b. consist mainly of short-term securities because they pay higher rates.
c. consist mainly of short-term securities to minimize interest rate risk.
d. be balanced between long- and short-term securities to minimize the adverse effects of either an upward or a downward trend in interest rates.
e. consist mainly of long-term securities because they pay higher rates.

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