Two Common Methods for Constructing a Bond Index Are

question 69

Multiple Choice

Two common methods for constructing a bond index are

• A) Full replication and stratified sampling
• B) Partial replication and overall market approach
• C) ETFs and High Yield sampling
• D) Multiple discriminant analysis and bond swaps
• E) None of the above

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Definitions:

Degrees of Freedom

Degrees of freedom refer to the number of independent values or quantities that can be assigned to a statistical distribution or to a system, minus the number of linearly independent constraints.

Chi-Squared Test

A statistical analysis conducted to assess whether there's a significant disparity between the anticipated frequencies and the actual frequencies across one or multiple categories.

P-Value

A measure that indicates the probability of observing the given data, or something more extreme, if the null hypothesis is true.

Contingency Table

A table often used in statistics to display frequencies for two or more categorical variables in a tabular form.