The Extra Return Required by Investors in Long-Term Securities to Offset

question 33

Multiple Choice

The extra return required by investors in long-term securities to offset the risk that the securities will decrease more in price when interest rates rise is the _________ risk premium.

• A) interest rate
• B) default
• C) term structure
• D) inflation
• E) liquidity

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Definitions:

Market Segments

Divisions of a market into distinct groups of buyers with different needs, characteristics, or behaviors.

Marketplace

An area or venue (physical or online) where goods and services are exchanged between buyers and sellers.

Marketing Strategy

A comprehensive plan formulated by a business to achieve its marketing goals, including targeting specific markets and determining the most effective ways to reach them.

Multiple Regions

Refers to the operation or presence of a business, product, or service in more than one geographical area or market.