Which One of the Following Statements Is True Concerning the Duration

question 79

Multiple Choice

Which one of the following statements is true concerning the duration of a perpetuity?

• A) The duration of a 15% yield perpetuity that pays $100 annually is longer than that of a 15% yield perpetuity that pays $200 annually.
• B) The duration of a 15% yield perpetuity that pays $100 annually is shorter than that of a 15% yield perpetuity that pays $200 annually.
• C) The duration of a 15% yield perpetuity that pays $100 annually is equal to that of a 15% yield perpetuity that pays $200 annually.
• D) The duration of a perpetuity cannot be calculated.

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Definitions:

Freudian Theory

A set of psychoanalytic psychological theories developed by Sigmund Freud, emphasizing unconscious motivations and conflicts as determinants of human behavior.

Superego

In psychoanalytic theory, it is the part of the personality that acts as the moral center, enforcing ethical conduct and striving for perfection.

Unconscious Motives

Desires and drives that influence behavior and decision-making processes without an individual's conscious awareness.

Freudian Theory

A set of psychoanalytic theories developed by Sigmund Freud, which focus on the unconscious mind and the influence of early childhood experiences.