Return Volatility Is

question 42

Multiple Choice

Return volatility is

• A) the statistical dispersion of financial returns on an investment.
• B) the probability that a swap will increase in value.
• C) the probability that a swaption will lose its value.
• D) none of the above

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Definitions:

Credit Balance

An accounting situation where the sum of credits in an account exceeds the sum of debits, often seen in liability and revenue accounts.

Income Summary

An account used in the closing process that aggregates all revenues and expenses to determine the overall profit or loss.

Capital

The wealth, either financial or other assets, used by an individual or business to fund operations and facilitate growth.

Withdrawals

Amounts of money taken out from a business by its owners for personal use.