Examlex
Which one of the following is the risk associated with receiving a mortgage bond's principal payments sooner than anticipated?
Updating Beliefs
The process of adjusting one's expectations or predictions based on new evidence or information.
Conservatism
In accounting, it is the principle of recognizing expenses and liabilities as soon as possible when there is uncertainty about the outcome, but only recognizing revenues when they are assured of being received.
Put-call Ratio
A metric used to measure market sentiment by dividing the number of traded put options by the number of traded call options.
Breadth
The extent to which movements in the broad market index are reflected widely in movements of individual stock prices.
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