If a Bond's Rating Declines,the Interest Rate Demanded by Investors,called

question 25

True/False

If a bond's rating declines,the interest rate demanded by investors,called the required return,also decreases.

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Definitions:

Fundamental Attribution Error

The tendency for observers to overestimate personality-based explanations for behaviors observed in others while underestimating situational explanations.

Systematic Judgments

Decisions or evaluations made based on a thorough analysis and following a specific method or protocol.

Confirmation Bias

A bias towards identifying, comprehending, selecting, and reminiscing information that supports and validates one's existing beliefs or assumptions.

Self-Fulfilling Prophecy

A prediction that directly or indirectly causes itself to become true.