In Duration Analysis, the Times at Which Cash Flows Are

question 29

True/False

In duration analysis, the times at which cash flows are received are weighted by the relative importance in present value terms of the cash flows arriving at each point in time.

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Definitions:

Maximizing

The practice of thoroughly considering all available options to make the best possible decision.

Satisficing

A decision-making strategy that involves searching through the available alternatives until an acceptability threshold is met, rather than seeking the best possible outcome.

Phoneme

The smallest unit of sound in a language that can distinguish one word from another.

Morpheme

The smallest grammatical unit in a language, unable to be further divided without altering or losing its meaning.