The Floating Rate Feature on Preferred Stock Causes More Volatility

question 90

True/False

The floating rate feature on preferred stock causes more volatility in its price.

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Definitions:

Directionality

The quality or condition of having a specific direction, orientation, or tendency.

Activation

Involves the arousal of the brain or body to a state of increased responsiveness to stimuli.

Vigor

Physical strength, health, and energy.

Nomothetic

An approach in psychology that seeks to study and identify general laws and principles that can be applied broadly across individuals.