Jill Needs to Study for a Test

question 9

Multiple Choice

Jill needs to study for a test.She starts to study and drinks a Coke.She then studies some more and eats a candy bar.To get the most effective studying the next day,what should Jill consume?

• A)coffee
• B)the Coke
• C)the candy bar
• D)the time of day will be the most important,not what Jill consumes

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Definitions:

Modified Duration

A measure of the sensitivity of a bond's price to changes in interest rates, modified to account for changes in cash flow schedules.

Basis Points

One basis point is equal to 1/100th of 1%, used primarily to denote the change in interest rates, equity indexes, and the yield of fixed-income securities.

Price Decline

A decrease in the market price of an asset or security.

Duration

A measure of the sensitivity of the price of a bond or other fixed-income investment to a change in interest rates, often expressed in years.