Which of the Following Is a Measure of the Sensitivity

question 149

Multiple Choice

Which of the following is a measure of the sensitivity of customers to changes in price?

• A)a liquidity ratio
• B)demand sensitivity
• C)price elasticity of demand
• D)marginal analysis
• E)basing-point

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Definitions:

Interest Rate Risk

Interest Rate Risk is the potential loss to investors, particularly in fixed-income securities, due to fluctuating interest rates.

T-Bond Futures

Futures contracts based on the expected value of U.S. Treasury bonds, used by investors to speculate on or hedge against future interest rate movements.

Swap

A financial agreement in which two parties exchange cash flows or liabilities from two different financial instruments.

Intrinsic Value

The inherent, objective value of an asset, investment, or company based on its fundamentals, without regard to market value.