In the Above Question, What Is the Approximate Pricing Error

question 31

Multiple Choice

In the above question, what is the approximate pricing error when using Macaulay's duration?

• A)$8
• B)$10
• C)$12
• D)$14
• E)$16

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Definitions:

Cannon-Bard Theory

A theory of emotion that argues emotions and bodily responses occur simultaneously, not sequentially.

James-Lange Theory

The James-Lange theory proposes that emotions result from the perception of bodily reactions to stimuli, rather than directly from the stimuli.

Cannon-Bard Theory

The psychological theory proposing that emotions and physiological reactions occur simultaneously, rather than one causing the other.

Cognitive Appraise

Cognitive Appraise is a process of evaluating and processing information and experiences in relation to one's own emotional and psychological state.