The Central Hypothesis of the Neutral Theory Asserts That

question 59

Multiple Choice

The central hypothesis of the neutral theory asserts that

• A) the rate of molecular mutation is influenced by natural selection.
• B) most variability in the structure of molecules does not affect the functioning of the organism.
• C) closely related species have more similar molecular structures than do distantly related species.
• D) nearly all mutations are neutral.
• E) mutations neither add amino acids to molecules nor subtract from them.

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Definitions:

Yield To Maturity

The total return expected on a bond if held until its maturity date, accounting for its current price, interest payments, and face value.

Maturity

The date on which a financial instrument (e.g., bond, loan) reaches its final installment, and the principal is due to be paid to investors.

Expectations Theory

A theory related to interest rates stating that the long-term interest rates are geometric averages of present and future short-term interest rates, reflecting market assumptions about future rates.

Forward Rate

The agreed-upon interest rate for a financial transaction that will occur at a future date, often used in the context of foreign exchange or interest rates.