Which of the Following Statements Is True of the Explicit

question 15

Multiple Choice

Which of the following statements is True of the explicit and implicit coercion strategy for dealing with resistance to change?

• A) It takes an excessive amount of time.
• B) It requires the change agent to have power.
• C) It is most effective when resistance is caused by misunderstanding and lack of information.
• D) It increases commitment and reconciles opposing views.

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Definitions:

Convexity

A measure of the curvature in the relationship between bond prices and bond yields, indicating how the duration of a bond changes as the interest rate changes.

Zero-Coupon Bonds

Debt securities that are issued at a discount and redeemed at face value but do not pay interest during their lifetime.

Immunize

A strategy in finance to shield a portfolio from interest rate movements by aligning the duration of assets and liabilities, thus stabilizing its overall value.

Interest Rate Risk

The potential for investment losses caused by fluctuations in interest rates, affecting debt securities inversely with their prices.