A Secular Trend Is The

question 50

Multiple Choice

A secular trend is the:

• A) annual pattern in sales or profits caused by weather, habit, or social custom.
• B) predictable shock to the pace of economic activity caused by wars, strikes, natural catastrophes, and so on.
• C) long-run pattern of increase or decrease in a series of economic data.
• D) rhythmic variation in economic series that is due to expansion or contraction in the overall economy.

Grasp the concepts of tuning, kaizen, and preventive maintenance as forms of continuous improvement.

Acknowledge the common fears and reactions employees have toward change.

Distinguish between different types of changes such as strategic and incremental changes.

Understand the process of managing change and the role of managers in embracing problems as opportunities.

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Definitions:

Yield to Maturity

The total return anticipated on a bond if it is held until the date it matures, expressed as an annual rate.

Par

The face value of a bond or stock, which is the amount the issuer agrees to pay back at maturity, often set at $100 for bonds.

SML Approach

Stands for Security Market Line, a graphical representation used in finance to demonstrate the relationship between risk and expected return of assets.

Systematic Risk

The risk inherent to the entire market or a market segment that cannot be mitigated through diversification, often influenced by factors like economic, political, and social changes.