Ceteris Paribus Means

question 117

Multiple Choice

Ceteris paribus means

• A) in sets of two.
• B) constant opportunity cost.
• C) other things being equal.
• D) buyer beware.
• E) there is no reason to argue about people's tastes.

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Definitions:

Immunization

A strategy in fixed-income portfolio management to shield the portfolio's value from interest rate movements.

Duration

A measure of the sensitivity of the price of a bond or other fixed-income investment to changes in interest rates, often used to assess risk.

Interest-Rate Change

A fluctuation in the cost of borrowing or the return on savings, which can significantly impact financial markets and economic conditions.

Term to Maturity

The duration of time until the final repayment date of a loan, bond, or other financial instrument.