What Two Systems Influence Our Processing of Information

question 31

Short Answer

What two systems influence our processing of information?

Grasp the concept of immunization and its purpose in bond portfolio management.

Compare and contrast duration and interest-rate risk across different types of bonds.

Understand the calculation and application of duration in bond portfolio immunization and liability matching.

Recognize the limits and assumptions underlying duration and its modifications.

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Definitions:

Introspection

The examination of one's own conscious thoughts and feelings, used as a method of self-reflection and in psychological studies.

Gestalt Psychology

A theory of mind and brain proposing that the operational principle of the brain is holistic, parallel, and analog, with self-organizing tendencies, or that the whole is different from the sum of its parts.

James

Refers to William James, an American philosopher and psychologist who is often referred to as the "Father of American psychology".

Ancient Greeks

The Ancient Greeks were people belonging to the Greek civilization during a period from the Dark Ages about 1200 BCE to the end of antiquity (c. 600 AD). This era was marked by significant developments in art, philosophy, science, and politics.