Which of the Following Is a Way to Interpret Factors

question 21

Multiple Choice

Which of the following is a way to interpret factors?

• A)based on the variables that load high on a factor
• B)by plotting the variables using the factor loadings as coordinates
• C)both A and B
• D)none of the above

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Definitions:

Date of Issue

The date on which a financial instrument, such as a bond or stock, is made available for sale or issued.

Redemption

The process of paying off or buying back securities or debts by the issuer before their maturity date, often at a predetermined price.

Carrying Value

The book value of an asset, reflecting its original cost minus any depreciation, amortization, or impairment charges.

Bonds Maturity

The date at which a bond's principal amount is due to be paid back to the bondholder, terminating the bond's existence.