The Electrical Principle That States "The Sum of the Voltage

question 73

Multiple Choice

The electrical principle that states "the sum of the voltage drops in a closed circuit equals the voltage applied to that circuit" is known as _____ law.

• A)Ohm's
• B)Watt's
• C)Kirchoff's
• D)Ampere's

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Definitions:

Macaulay Duration

A measure of the weighted average time until a bond's cash flows are paid back, used to assess interest rate risk.

Yield To Maturity

The total return anticipated on a bond if held until it matures.

Interest-Rate Risk

The risk that an investment's value will change due to a change in the absolute level of interest rates, affecting debt securities inversely with respect to their prices and yields.

Unsystematic Risk

The portion of total risk that is specific to a single investment or to a small group of investments, also known as idiosyncratic or specific risk, which can be mitigated through diversification.