In Calculating the Value at Risk (VAR) of Fixed-Income Securities

question 34

Multiple Choice

In calculating the value at risk (VAR) of fixed-income securities in the Risk Metrics model

• A)the VAR is related in a linear manner to the DEAR.
• B)the price volatility is the product of the modified duration and the adverse yield change.
• C)the yield changes are assumed to be normally distributed.
• D)All of these.
• E)the price volatility is the product of the modified duration and the adverse yield change, and the yield changes are assumed to be normally distributed.

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Definitions:

Anti-Gay Attitudes

Negative biases or prejudices towards individuals who are homosexual or perceived to be homosexual.

Less Educated

Refers to individuals who have received minimal formal education or lower levels of schooling compared to others.

Highly Educated

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Ingroup Bias

The tendency to favor members of one's own group over those of other groups, often leading to prejudice and discrimination.