Which of the Following Is NOT True of the Habitat

question 86

Multiple Choice

Which of the following is NOT true of the habitat term premium?

• A)It is zero under the expectations theory.
• B)It is infinite under the segmented markets theory.
• C)It increases as a bond's maturity increases.
• D)It is zero for thirty-year bonds.

---

Definitions:

Family Enterprising

Businesses or economic efforts led by family units or managed with significant family involvement, often characterized by a distinctive culture and values.

Financial Mind-Set

An attitude or perspective that emphasizes the importance of financial outcomes in decision-making.

Operational Mind-Set

A way of thinking that focuses on the efficient execution of processes, tasks, and strategies.

Strategic Thinking

The process of planning for the future, analyzing patterns, and making decisions that will prepare an organization for long-term success.