Is It Possible to Prove, for Certain, That a Scientific

question 50

Multiple Choice

Is it possible to prove, for certain, that a scientific theory is true?

• A) Yes, by means of a single confirmed experiment that verifies the theory.
• B) Yes, by carrying out a sufficient number of experimental observations.
• C) Yes, by deducing it logically from other scientific theories that are known to be true.
• D) No, because it is always possible that a future experiment will disagree with the theory.
• E) No, because of the experimental error, or uncertainty, that is always present in any experimental result.

---

Definitions:

Future Cash Flows

Future cash flows refer to the estimated amount of money that is expected to be received or paid out by a company in future periods.

Sinking Fund

Facilitates the orderly retirement of a bond issue. This can be achieved in one of two ways: the company can call in for redemption (at par value) a certain percentage of bonds each year or the company may buy the required amount of bonds on the open market.

Equilibrium

The condition under which the intrinsic value of a security is equal to its price; also, its expected return is equal to its required return.

Yield Curve

The curve that results when the yield to maturity is plotted on the y-axis with term to maturity on the x-axis.