Convexity Is a Gauge for Which of the Following

question 16

Multiple Choice

Convexity is a gauge for which of the following?

• A)Profitability
• B)Return
• C)Sensitivity
• D)Duration

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Definitions:

Contracts

Legal agreements between two or more parties that are enforceable by law, outlining responsibilities, duties, and sharing of benefits.

IRR

Internal Rate of Return; the discount rate that makes the net present value of all cash flows from a particular project zero.

Cash Flow

The net amount of cash and cash-equivalents being transferred into and out of a business.

Project

A temporary endeavor undertaken to create a unique product, service, or result with specific objectives and defined beginning and end.