Which of the Following Is Indicated by High Numerical Value

question 39

Multiple Choice

Which of the following is indicated by high numerical value of the duration of an asset?

• A)low sensitivity of an asset price to interest rate shocks
• B)high interest inelasticity of a bond
• C)high sensitivity of an asset price to interest rate shocks
• D)lack of sensitivity of an asset price to interest rate shocks

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Definitions:

Blocking Effect

A result showing that an animal learns nothing about a stimulus if the stimulus provides no new information.

Conditioning

A behavioral process whereby a response becomes more frequent or more predictable in a given environment as a result of reinforcement, with reinforcement typically being a stimulus or reward for a desired response.

Surprise

An emotional response to unexpected events or information, characterized by heightened interest and physiological arousal.

Conditioned Emotional Response

A type of learned response in which an emotional reaction is elicited by a previously neutral stimulus through conditioning.