The Following Information Relates to Questions 49-57liz Tyo Is a Fund

question 7

Multiple Choice

The following information relates to Questions 49-57liz Tyo is a fund manager for an actively managed global fixed-income fund that buys bonds
issued in Countries A, b, and
-based on the given Z-spreads for bonds 1, 2, and 3, which bond has the greatest credit and liquidity risk?

• A) bond 1
• B) bond 2
• C) bond 3

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Definitions:

Dividend

A portion of a company's earnings distributed to its shareholders, typically in the form of cash or additional stock.

Shares

Ownership stakes in a company or financial asset which entitle the holder to a proportional share of the profits, distributed as dividends, if they are announced.

Standard Deviation

A statistical measure of the dispersion or variability of a set of data points around the mean, commonly used to quantify the amount of variation.

Average Rate

The mean value of a set of rates, capturing the central tendency over a specified period or dataset.