Which of the Following Is an Example of a Negative

question 68

Multiple Choice

Which of the following is an example of a negative duration asset that is valuable as a portfolio-hedging device for an FI manager when included with regular bonds whose price-yield curves show the normal inverse relationship.

• A)PO strip.
• B)IO strip.
• C)Class B bonds
• D)Class Z bonds
• E)Class A bonds

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Definitions:

Internal Locus

The belief that one's actions and behaviors are guided by personal decisions and efforts, rather than by external factors.

Self-Esteem

A person's overall sense of personal value or worth.

Internal Locus

An individual's belief that they have control over their life events and outcomes, as opposed to external forces having that control.

External Locus

Refers to an external locus of control, where individuals believe their success or failure is due to external factors beyond their control.