As the Term of the Security Increases, the Sensitivity of Its

question 12

Multiple Choice

As the term of the security increases, the sensitivity of its price to changes in interest rates:

• A) cannot be determined due to lack of information.
• B) increases.
• C) decreases.
• D) is unchanged.

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Definitions:

Pygmalion Effect

Leader’s ability to elevate workers’ performance by the simple method of expecting them to perform well; the manager’s high expectations become a self-fulfilling prophecy.

Level of Performance

The degree or standard of efficiency, proficiency, or achievement in carrying out a task or action.

Style Flexibility

The ability to adapt one's approach or behavior to effectively handle different situations or interact with various individuals.

Leadership Behavior

Actions and qualities exhibited by leaders, including decision-making, motivation, guidance, and the ability to influence others.