Approximate Percentage Change in a Financial Asset's Price Equals What

question 16

Multiple Choice

Approximate percentage change in a financial asset's price equals what?

• A) It equals -Duration x (Yield change in decimal forms) x 100.
• B) It equals [-Duration / (Yield change in decimal forms)] x 100.
• C) It equals -Duration x [(Yield change in decimal forms) / 100].
• D) It equals +Duration x (Yield change in decimal forms) x 100.

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Definitions:

Variable Costs

Variable Costs are expenses that change in direct proportion to the volume of output or activity in a business, such as materials and labor.

Average Fixed Costs

The fixed costs of production (costs that do not change with the level of output) divided by the quantity produced.

Total Costs

The sum of fixed and variable costs incurred by a firm in the production of goods or services.