A Portfolio's Performance Is Its Yield to the Holder

question 186

True/False

A portfolio's performance is its yield to the holder.

Comprehend the effect of interest rate changes on the profitability of selling investments before maturity.

Calculate the maturity value of notes with given face value, interest rates, and durations.

Determine the proceeds from non-interest-bearing promissory notes when discounted before maturity.

Identify and calculate missing values in promissory notes scenarios.

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Definitions:

Thorndike

An influential American psychologist who developed the law of effect, which suggests that behaviors followed by satisfying consequences tend to be repeated, while those followed by unpleasant consequences are less likely to be repeated.

Reinforcements

In psychology, stimuli or events that increase the likelihood of a behavior being repeated.

Operant Conditioning

A teaching technique that involves changing the level of a behavior by applying rewards or punishments.

Classical Conditioning

A process in which learning takes place by pairing two stimuli repeatedly; the response, although initially elicited by the second stimulus, is eventually elicited by the first stimulus alone.