10-18 the JPM RiskMetrics Model Generally Prefers Using the Present

question 51

True/False

10-18 The JPM RiskMetrics model generally prefers using the present value of cash flow changes as the price-sensitivity weights.

---

Definitions:

Cash Account

A financial account that records cash transactions in and out.

Posting Reference

A code or number used in accounting to indicate the ledger account to which a transaction has been posted.

Journal Entry

A record in the books of accounts that documents a financial transaction, showing the accounts and amounts debited and credited.

Prepaid Insurance

An asset account that represents payments made in advance for insurance coverage, which has not yet expired.