Which of the Following Is True of All Normal Distributions

question 125

Multiple Choice

Which of the following is true of all normal distributions?

• A) They are symmetrical.
• B) They have a standard deviation of zero.
• C) They have a mean equal to the standard deviation.
• D) They have a mean of zero.

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Definitions:

Portfolio Duration

A measure of the sensitivity of a portfolio's value to changes in interest rates, often used for managing the interest rate risk.

Interest Rates

The expense associated with obtaining a loan, or the incentive for depositing funds, usually shown as a percentage of the original amount.

Zero-Coupon Bond

A bond that does not pay periodic interest payments but is issued at a deep discount from the face value and is redeemed at the face value at maturity.

Duration

A measure of the sensitivity of the price of a financial asset or liability to changes in interest rates, often used with bonds to assess interest rate risk.