The Fundamental Aim of Principal Component Analysis and Factor Analysis

question 10

Multiple Choice

The fundamental aim of principal component analysis and factor analysis is to reduce the factors so that the model is simplified, but what is the process called?

• A) Extraction
• B) Interaction
• C) Separation
• D) Integration

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Definitions:

Convertible Bond

A type of bond that allows bondholders the option to convert their debt into a predetermined number of shares of the issuing company.

Call Price

The price at which a bond or other financial security can be repurchased by the issuer before its maturity date, often higher than the face value to compensate investors.

Conversion Price

The predetermined price at which convertible securities like bonds or preferred stocks can be converted into a specific number of common shares.

Stockholder's Earnings

Also known as earnings available for shareholders, it's the portion of a company's profit allocated to each outstanding share of common stock.