All of the Following Are Common Shapes for the Yield

question 67

Multiple Choice

All of the following are common shapes for the yield curve except ____________.

• A) Elliptical
• B) Upward-sloping
• C) Flat
• D) Inverted

---

Definitions:

Actual Earnings

The actual profit or income generated by a company, reflecting its financial performance over a specific period.

NPVGO

Net Present Value of Growth Opportunities refers to the present value of all future cash flows that a new project is expected to generate after accounting for the initial investment cost.

Equity Cost Of Capital

The rate of return that shareholders require on the equity or ownership interest they have in a company, used in evaluating investments and capital projects.