A Pie Chart Showing 80% Yes and 20% No Would

question 34

True/False

A pie chart showing 80% yes and 20% no would look the same whether it was based on 10,000 observations or 10 observations.This is one way that pie charts can be deceptive.

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Definitions:

Yield

The income returned on an investment, such as the interest or dividends received, typically expressed as a percentage of the investment’s cost or current market value.

Modified Duration

Modified Duration measures the sensitivity of the price of a bond or other debt instrument to a change in interest rates, indicating the percentage change in price for a parallel shift in rates.

Modified Duration

A measure of the sensitivity of a bond's or bond portfolio's price to changes in interest rates, adjusting for the changing yield to maturity.

Market Yield

The current yield of a bond or other fixed-income security, calculated by dividing the annual interest income by the current market price.