Which of the Following Is Indicated by High Numerical Value

question 83

Multiple Choice

Which of the following is indicated by high numerical value of the duration of an asset?

• A)Low sensitivity of an asset price to interest rate shocks.
• B)High interest inelasticity of a bond.
• C)High sensitivity of an asset price to interest rate shocks.
• D)Lack of sensitivity of an asset price to interest rate shocks.
• E)Smaller capital loss for a given change in interest rates.

Comprehend the concept of positioning and its significance in marketing strategies.

Differentiate between the various targeting strategies and their applicability to different market scenarios.

Grasp the necessity of continuous market evaluation and the role of feedback in positioning products.

Recognize the importance of a positioning statement and its components.

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Definitions:

Net Asset Value

The total value of a fund's assets minus its liabilities, often used in the context of mutual funds to represent the per-share/unit value of the fund.

Assessment Value

The dollar value assigned to a property for purposes of measuring applicable taxes or insurance premiums.

Investment Company

A business structure, such as a corporation or trust, dedicated to managing the combined investments of various investors in financial markets.

Front-end Loads

Charges or fees that are paid by investors at the time of purchasing shares of a mutual fund or an investment trust.