Which of the Following Is NOT True of the Term

question 60

Multiple Choice

Which of the following is NOT true of the term premium?

• A) It is zero under the expectations theory.
• B) It is infinite under the segmented markets theory.
• C) It increases as a bond's maturity increases.
• D) It is zero for thirty-year bonds.

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Definitions:

Opportunity For Selection

Refers to the variance in fitness within a population. When there is no variance in fitness, there can be no selection; when there is large variance in fitness, there is a great opportunity for selection. In this sense, the opportunity for selection constrains the intensity of selection that is possible.

Male Signal

A form of communication used by male animals to attract females, assert dominance, or deter rivals, often involving visual displays, sounds, or chemical signals.

Sensory Bias

A concept in evolutionary psychology and ethology suggesting that preference for certain traits evolves because it exploits pre-existing preferences within the sensory system of an organism.

Condition-Dependent

Relating to traits or behaviors that vary according to an individual's environment or physical condition.