When Using the RiskMetrics Model, Price Volatility Is Calculated as

question 105

Multiple Choice

When using the RiskMetrics model, price volatility is calculated as

• A)the price sensitivity times an adverse daily yield move.
• B)the dollar value of a position times the price volatility.
• C)the dollar value of a position times the potential adverse yield move.
• D)the price volatility times the √N.
• E)None of the options.

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Definitions:

Dichotomously Branched

A branching pattern where each branch divides into two parts at a certain point.

Megaphylls

Leaves with a highly branched vascular system, characteristic of the majority of vascular plants, offering increased efficiency in photosynthesis.

Capsule

A protective layer, typically polysaccharide or protein, surrounding the cell walls of some bacteria and fungi.

Haploid Spores

Reproductive cells produced by some plants, fungi, and protists that have only one set of chromosomes and can develop into a new organism without needing to fuse with another cell.