Which One of the Following Statements Correctly Describes the Weights

question 80

Multiple Choice

Which one of the following statements correctly describes the weights used in the Macaulay duration calculation? The weight in year t is equal to ________.

• A) the dollar amount of the investment received in year t
• B) the percentage of the future value of the investment received in year t
• C) the present value of the dollar amount of the investment received in year t
• D) the percentage of the total present value of the investment received in year t

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Definitions:

Impulse Buying

Impulse buying is the act of purchasing goods or services without premeditation or planning, often triggered by emotions or situational factors.

Nonrational Behavior

This term describes actions or decisions that do not follow rational judgement or logical reasoning.

Marketers

Professionals involved in the process of promoting, selling, and distributing a product or service to consumers.

Behavioral Economists

Scholars who examine how psychological, cognitive, emotional, cultural, and social aspects influence the economic choices made by individuals and institutions.