Which of the Following Statements Is True

question 82

Multiple Choice

Which of the following statements is true?

• A) If Duration > Investment Horizon, the investor faces Net Reinvestment Risk.
• B) If Duration < Investment Horizon, the investor faces Net Price Risk.
• C) If Duration = Investment Horizon, the investor is immunized.
• D) All of the above statements are true.
• E) None of the above statements are true.

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Definitions:

Stereotype Threat

The risk of confirming negative stereotypes about an individual's racial, gender, or cultural group which can impair their performance.

Expectation

Beliefs about the future, specifically about what is likely to happen or what someone thinks should happen.

Realistic Group Conflict Theory

A theory which asserts that the initial negative feelings between groups are often based on a real conflict or competition regarding scarce resources.

Stereotype Threat Theory

The theory that individuals may underperform in situations where they fear confirming negative stereotypes about their social group.