The ______ Is a Measure of the Average Rate of Return

question 21

Multiple Choice

The ______ is a measure of the average rate of return an investor will earn if the investor buys the bond now and holds until maturity.

• A) current yield
• B) dividend yield
• C) P/E ratio
• D) yield to maturity
• E) discount yield

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Definitions:

Sensory Modality

A sensory modality is a specific channel of sensory perception, such as vision, hearing, touch, taste, or smell, through which humans and other organisms experience the world.

Transfer-Appropriate Processing

A principle suggesting that memory recall is more efficient when the encoding context of information matches the retrieval context.

Retrieval Cue

Stimuli or signals that can trigger the memory of a previous experience, making it easier to recall information.

Encoding Specificity Principle

The theory that memory is improved when information available at encoding is also present at retrieval.