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Use the table for the question(s) below.
Consider the following four bonds that pay annual coupons:
-The percentage change in the price of the bond "A" if its yield to maturity increases from 5% to 6% is closest to:
Systematic Risk Principle
A principle stating that investors need to be compensated for taking on increased levels of undiversifiable risk.
Not Correlated Stocks
Stocks whose price movements are independent of each other, indicating no direct relationship in their performance.
Volatility
The degree of variation of a trading price series over time, usually measured by the standard deviation of logarithmic returns.
Negatively Correlated Stocks
Stocks that move in opposite directions; when the price of one increases, the price of the other tends to decrease.
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