Which One of the Following Is the Measure of Interest

question 20

Multiple Choice

Which one of the following is the measure of interest rate risk for fixed-income securities?

• A) standard deviation
• B) Macaulay duration
• C) variance
• D) Jensen's alpha
• E) beta

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Definitions:

Gestalt Principle

A theory in psychology that proposes the human brain sees objects as whole forms rather than as a collection of individual parts.

Bottom-Up Processing

A way of processing information in which the system builds up to a complete perception starting from individual pieces of sensory information.

Convergence

The act of coming together or the degree to which two or more things approach being similar or consistent.

Perceptual Cues

External hints or signals that can be perceived by the senses, used to identify or infer information about the environment.