Assume the Following Returns and Yields: U

question 220

Multiple Choice

Assume the following returns and yields: U.S. T-bill = 8%, 5-year U.S. T-note = 7%, IBM common stock = 15%, IBM AAA Corporate Bond = 12% and 10-year U.S. T-bond = 6%. Based on this information, the shape of the yield curve is ________.

• A) upward sloping
• B) downward sloping
• C) flat
• D) normal

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Definitions:

Lean Medium

A method or tool that facilitates efficient and effective communication or project management with minimal waste.

Lengel-Daft Contingency Model

A theoretical framework suggesting that the effectiveness of communication processes and mediums varies according to the uncertainty and complexity of the situation.

Rich Medium

Communication channels with the capacity to convey messages in a more understanding and effective manner through immediate feedback, multiple cues, and personalization.

Grapevine Distortion

The alteration or misinterpretation of messages as they pass through informal communication channels within an organization, often leading to misinformation.