A Behavioral Assessor Is Using the SORC Model to Describe

question 51

Multiple Choice

A behavioral assessor is using the SORC model to describe a client's problem.The client is phobic of dogs.Running inside after seeing a dog should be listed under

• A) S.
• B) O.
• C) R.
• D) C.

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Definitions:

Interest-Rate Risk

The possibility of incurring losses in investments as a result of variations in interest rates, especially impacting fixed-income securities.

Coupon

The interest rate paid by a bond, usually expressed as a percentage of the bond's face value.

Cash Flow Matching

A form of immunization, matching cash flows from a bond portfolio with those of an obligation.

Immunization

A strategy in fixed income investing that aims to make a portfolio's duration and interest rate risk match its liability obligations.