Which of the Below Statements Is TRUE

question 39

Multiple Choice

Which of the below statements is TRUE?

• A) Fifty basis points are equal to one-fifth percentage point, and a yield change from 9% to 9.2% represents a 50 basis point change in yield.
• B) One basis point is defined as 0.0001, or equivalently, 0.01%.
• C) A yield change from 7% to 7.5% is a 0.50 basis point change.
• D) A yield change from 6% to 8.35% is a 2,350 basis point change in yield.

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Definitions:

Outsourcing

The practice of hiring third-party vendors to perform services or produce goods traditionally performed in-house, usually to cut costs.

Metric

A quantitative measure used to assess performance, progress, or quality of a product, process, or service.

Measure

The process of quantitatively assessing performance, characteristics, or quality of products, services, or processes, typically by using specific tools and metrics.