Which of the Following Means a Willingness to Test Ideas

question 2

Multiple Choice

Which of the following means a willingness to test ideas using the scientific method to draw conclusions?

• A) open-mindedness
• B) skepticism
• C) empiricism
• D) creativity

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Definitions:

Yield Spread

The difference between the yields of two bonds with differing credit qualities, maturities, or issuers.

Historical Levels

Refers to the past recorded levels or values of a financial metric, interest rate, stock price, or any other economic indicator.

Basis Points

A unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument, equal to 1/100th of a percent.

Corporate Bond

A debt security issued by a corporation to raise funds, promising to pay back the principal along with interest at a specified rate and schedule.