The ________ Is a Common Stock Indicator,consisting of 30 Large

question 3

Multiple Choice

The ________ is a common stock indicator,consisting of 30 large industrial firms,and is used to indicate how well stocks have done.

• A)DAIA
• B)CMIA
• C)DJIA
• D)SPFA
• E)none of the above

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Definitions:

Rate Anticipation Swap

A switch made between bonds of different durations in response to forecasts of interest rates.

Portfolio Duration

A measure of the sensitivity of a portfolio's value to changes in interest rates, often used for managing the interest rate risk.

Interest Rates

The expense associated with obtaining a loan, or the incentive for depositing funds, usually shown as a percentage of the original amount.

Zero-Coupon Bond

A bond that does not pay periodic interest payments but is issued at a deep discount from the face value and is redeemed at the face value at maturity.