What Did Robert Merton Call a Prediction That Came True

question 77

Multiple Choice

What did Robert Merton call a prediction that came true only because the prediction was made?

• A) a defining prophecy
• B) a Thomas prediction
• C) a self-fulfilling prophecy
• D) a sociological prediction
• E) a labeling prophecy

Understand the calculation and implications of bond duration and modified duration.

Recognize the effects of yield changes on bond prices.

Identify and apply different bond immunization and swap strategies in portfolio management.

Analyze the impact of coupon rate, maturity, and yield to maturity on bond duration and price volatility.

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Definitions:

Guidelines

General rules, principles, or pieces of advice that suggest how something should be done or what something should be.

Account Category

The classification of accounts into different types, such as assets, liabilities, equity, revenue, and expenses, to organize financial information effectively.

Assets

Economic resources or valuable items owned by a business, capable of being converted into cash or used in generating revenue.

Liabilities

Financial obligations a company owes to outside parties, such as loans or accounts payable.