What makes up the interest rate risk?
What will be an ideal response?
Answer: The inflation risk premium is the rate in addition to the real rate of return that investors demand to compensate for anticipated inflation over the life of a security. Interest rate risk also includes the default risk premium or an additional investment return to compensate investors for taking on the risk that the issuer may not pay the interest or principal on a security. A third factor is the maturity risk premium, which is an additional return demanded by investors in longer-term securities to compensate for the fact that the value of securities with longer maturities tends to fluctuate more when interest rates change. The liquidity risk premium reflects the risk that some bonds cannot be converted into cash quickly at a fair market price.
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Which leader behavior is a prerequisite for the other adaptive leader behaviors?
A. regulate distress B. identify adaptive challenges C. maintain disciplined attention D. get on the balcony
______ is the process of estimating the demand for a firm’s products in the near future.
a. Demand forecasting b. Demand management c. Demand planning d. Demand assessment
The Farm Fresh Egg project was too great for one person to pull off. The construction costs for the coop and chicken run were enormous and the sinister threat of avian flu hung over the area like a black cloud
It was only through the combined efforts of Matsushita Chickenworks and the City of Edmond that the project would be undertaken, since they would be able to: A) Accept the risk. B) Minimize the risk. C) Transfer the risk. D) Share the risk.
Games and toys producers spend a higher percentage of their sales on advertising than do footwear producers.
Answer the following statement true (T) or false (F)