The S&P 500 Volatility Index Is the ________ While the NASDAQ

question 60

Multiple Choice

The S&P 500 volatility index is the ________ while the NASDAQ 100 volatility index is the ________.

• A)VIX; VXO
• B)VIX; VXN
• C)VXO; VIX
• D)VXO; VXN
• E)VXN; VIX

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Definitions:

Risk Premium

The additional yield beyond the risk-free rate that investors demand as a reward for taking on the risk associated with an investment.

Risk-Free Asset

An investment with a guaranteed return and no risk of financial loss.

Standard Deviation

Standard deviation measures the amount of variation or dispersion from the average in a set of data points, indicating how spread out the numbers are.

Real Rate of Interest

The interest rate that has been adjusted to remove the effects of inflation; reflects the true cost of borrowing.