Whether an Analyst Should Use a Short or Long-Term Interest

question 46

True/False

Whether an analyst should use a short or long-term interest rate for the risk free rate in calculating the CAPM depends on when the investor receives their future cash flows.

---

Definitions:

German Approach

A methodological approach characterized by thoroughness, precision, and planning, often associated with German engineering and management practices.

Technocentric

Placing technology and engineering at the center of job design decisions.

Anthropocentric

Placing human considerations at the center of job design decisions.

Work Design

The process of structuring work tasks, processes, and environments to optimize employee performance, job satisfaction, and outcomes.