Which of the Following Statements Is FALSE

question 47

Multiple Choice

Which of the following statements is FALSE?

• A)We can measure a firm's sensitivity to interest rates by computing the duration of its balance sheet.
• B)Just as the interest rate sensitivity of a single cash flow increases with its maturity,the interest rate sensitivity of a stream of cash flows increases with its duration.
• C)By restructuring the balance sheet to increase its duration,we can hedge the firm's interest rate risk.
• D)A firm's market capitalization is determined by the difference in the market value of its assets and its liabilities.

Examine the process for resolving ethical dilemmas from a utilitarian perspective.

Distinguish between utilitarian considerations in personal versus general actions.

Understand the challenges in predicting outcomes and the potential inefficiency of consequentialist deliberations.

Understand the principle of utility and its association with the Greatest Happiness Principle as articulated by Mill.

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Definitions:

Hardy-Weinberg Theorem

A principle stating that allele and genotype frequencies in a population will remain constant from generation to generation in the absence of other evolutionary influences.

Genetic Bottleneck

An event in which a significant percentage of a population or species is killed or otherwise prevented from reproducing, leading to a decrease in genetic diversity.

Founder Effect

A form of genetic drift that occurs when a new population is established by a very small number of individuals from a larger population, leading to reduced genetic variation.

Genetic Drift

A mechanism of evolution that causes changes in allele frequencies in a population due to random sampling effects, particularly in small populations.