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Table 22-1
Three friends-Stephanie, Stella, and Lydia-are deciding where to go together for vacation. They all agree that they should go to one of the three places: Italy, Spain, or Hawaii. They also agree that they will have two pairwise votes to determine where to go on vacation, with the majority determining the outcome on each vote. The first, second, and third choices for each person are as indicated in the following table.
-Refer to Table 22-1. If the first vote pits Italy against Hawaii and the second vote pits Spain against the winner of the first vote, then the outcome is as follows:
Shareholders' Equity
The residual interest in the assets of a company after deducting liabilities, representing the ownership stake of shareholders.
Interest Rate Risk
The risk that the value of an investment will decrease due to a change in interest rates.
Average Duration
The weighted average time it takes for an investor to receive all cash flows from a bond or a portfolio of bonds, factoring in the present value of those cash flows.
Perpetuity
A type of annuity that lasts forever, providing payments that continue indefinitely.
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