Group Members Tend to Be Homogeneous Because Many Groups Attract

question 169

Multiple Choice

Group members tend to be homogeneous because many groups attract people who are similar to join and

• A)groups tend to operate in ways that encourage similarity in the members.
• B)the membership of most groups never changes.
• C)anyone who deviates from the group is immediately removed.
• D)screen new members carefully to make sure they will "fit in."

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Definitions:

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, considering all payments of principal and interest at expected times.

Zero-Coupon Bond

A Zero-Coupon Bond is a debt security that does not pay interest (coupon) during its life but is issued at a substantial discount to its face value, with the face value being repaid at maturity.

Forward Interest Rate

An interest rate agreed upon for a loan or investment in the future, often derived from the yield curve of current interest rates.

Liquidity Preference Theory

A theory suggesting that investors demand higher yields on securities with longer maturities due to the preference for liquidity and lower risk associated with shorter-term securities.