Which of the Below Statements Is TRUE

question 8

Multiple Choice

Which of the below statements is TRUE?

• A) The pure expectations theory pays attention to the risks inherent in investing in bonds and like instruments.
• B) In regards to the uncertainty about the return over some investment horizon, one risk involves the uncertainty about the price of the bond at the beginning of the investment horizon.
• C) An investor who plans to invest for five years would not consider the alternative of investing in a 30-year bond and selling it at the end of five years.
• D) The risk that the price of the bond will be lower than currently expected at the end of the investment horizon is called price risk.

---

Definitions:

Idea Screening

The stage of new-product development in which the firm evaluates ideas to determine their fit within the new-product strategy.

Product Development

Product development is the complete process of bringing a new product or service to market, from idea conception, through design and manufacturing, to the final release and marketing.

New-Product Strategy Development

The stage of new-product development in which the company determines the direction it will take when it develops a new product.

Marketing Plan

An action-oriented document or playbook that guides the analysis, implementation, and control of the firm’s marketing strategy.