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A Principal Components Analysis Was Run and the Following Eigenvalue

question 24

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A principal components analysis was run and the following eigenvalue results were obtained: 2.731,2.218,.442,.341,.183,and .085.How many factors would you retain using the eigenvalues to determine the number of factors?


Definitions:

Effective-Interest Method

A technique for calculating the amortized cost of a bond and the amount of interest income over each period based on the bond's yield at issuance.

Bond Premium

Bond Premium represents the additional amount over the face value that investors pay when they purchase a bond, often due to its interest rate being higher than the current market rate.

IFRS And ASPE

International Financial Reporting Standards (IFRS) and Accounting Standards for Private Enterprises (ASPE) are sets of accounting standards for financial reporting.

Market Value

The current price at which an asset or service can be bought or sold in a marketplace.

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