The Process of Measuring the Effect of a Shift in Market

question 45

Multiple Choice

The process of measuring the effect of a shift in market interest rates on the value of an investment is called:

• A)duration analysis.
• B)immunization.
• C)terminal wealth analysis.
• D)None of the above

---

Definitions:

Variance

A measure of dispersion that represents the average of the squared differences from the mean.

P-Value

A statistical measure that helps researchers determine if their hypothesis is supported, indicating the probability of observing the obtained results, or more extreme, if the null hypothesis is true.

Power of the Test

The probability that a statistical test will correctly reject a false null hypothesis, or its ability to detect an effect when there is one.

True Value

The actual or real value of a parameter which is estimated in a study.