The Choice of Statistical or Non-Statistical Sampling _______

question 168

Multiple Choice

The choice of statistical or non-statistical sampling _______.

• A)affects the selection of procedures, or the competence of evidence obtained about individual sample items
• B)does not affect the selection of procedures, or the competence of evidence obtained about individual sample items
• C)does not affect the selection of procedures, or the competence of evidence obtained about individual population items
• D)is best determined by management, who know the company best

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Definitions:

Macaulay Duration

A measure of the weighted average time until a bond or fixed income portfolio's cash flows are received, used to gauge interest rate sensitivity.

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.