The Nelson-Siegel Model Is Extended to What Is Known as the Nelson-Siegel-Svensson

question 17

Multiple Choice

The Nelson-Siegel model is extended to what is known as the Nelson-Siegel-Svensson model. The primary additional property that is added by this extension is:

• A) It allows the curve to have a double hump.
• B) It increases the smoothness of the fitted curve.
• C) It mathematically simplifies the earlier model.
• D) It adds an additional name to the moniker of the model.

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Definitions:

Opportunity Cost

The financial sacrifice of skipping the subsequent best choice when a decision is made.

Coconuts

Coconuts are the large seeds of the coconut palm tree, known for their edible flesh, water, and oil, which are used in a variety of culinary, cosmetic, and industrial products.

Fish

Aquatic, vertebrate animals with gills and fins, living in water bodies around the world, used for food, sports, or as pets.

Production Possibility Frontier

A figure displaying every possible maximum production scenario for two different goods, with fixed inputs such as resources and other variables.