Which statement(s) are true regarding the liquidity premium theory:

A. States that long-term rates are equal to geometric averages of current and expected short-term rates.
B. An upward sloping yield curve may reflect investor's expectations that future short-term rates will be flat.
C. Liquidity premiums that increase with maturity result in upward sloping yield curves.
D. All of the above.


Answer: D

Business

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Wadsworth Distribution Company has total advertising expenses of $84,000: $32,000 for radio and $52,000 for print advertising. The expense for print advertising is allocated to Department A and Department B based on the total of net sales represented by each department. The total net sales for Wadsworth Distribution Company is $744,000 . The net sales generated are $558,000 and $186,000 for

Department A and B, respectively. How much of the expense for print advertising should be allocated to Department A? a. $13,000 b. $39,000 c. $63,000 d. $21,000

Business

In indirect channel systems, the business interfaces with customers at all contact points and retains ownership of the product until delivery

Indicate whether the statement is true or false

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Answer the following statements true (T) or false (F)

1. Common-information bias is the inclination to overemphasize information held by the majority of group members while failing to consider other perspectives held by the minority. 2. Confirmation bias is the propensity to over-rely on information recollected from memory when making a decision. 3. Innovation is the generation of meaningful ideas by individuals or teams and creativity is the creation and development of a new product or service. 4. As stated in the textbook, creativity and innovation are the lifeblood of successful organizations.

Business

Tort is a French word for "court."

Answer the following statement true (T) or false (F)

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