Which of the Following Statements Is True

question 48

Multiple Choice

Which of the following statements is true?

• A)Daily price volatility is calculated as the price sensitivity to a small change in yield multiplied by the adverse daily yield move.
• B)Daily price volatility is calculated as the negative modified duration of a security multiplied by the adverse daily yield move.
• C)The daily price volatility of a security influences how much an FI might lose in case of adverse market movements.
• D)All of the listed options are correct.

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Definitions:

Multi-step Approach

A method involving several stages or phases to achieve a goal or solve a problem.

Assessing Situation

The process of evaluating the current state of affairs, identifying potential issues, and determining the necessary actions.

Late Adolescence

A developmental stage roughly covering the age range from 18 to 21 years, characterized by significant psychological and physiological changes.

Young Adulthood

The life stage following adolescence, typically referring to individuals aged 18 to 25, characterized by exploration and establishing independence.