The current rate of return on a one-year U.S. Government security is 3%. The rate of return on a two-year U.S
Government security is 5%. According to the expectations theory, what is the return on a one-year U.S.
Government security purchased one year from today?
$1,000 × 1.03 = $1,030 at the end of year one
$1,000 × (1.05)2 = $1,102.50 at the end of two years
$1,102.50 - $1,030 = $72.50 interest needed in year 2
$72.50/$1,030 = 7.04%
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Which of the following is an indication of effective leadership skills?
A) Keeping the group focused on the most immediate task B) Assigning tasks only to those most capable of handling the task C) Encouraging positive collaboration D) Using a flexible timeline to allow for unforeseen events E) Allowing team members to resolve differences in their own way
A gift requires actual delivery in order to be effective
Indicate whether the statement is true or false