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.

---

Definitions:

The Federalist Papers

A series of 85 articles and essays written to promote the ratification of the United States Constitution.

Alexander Hamilton

A Founding Father of the United States, first Secretary of the Treasury, and influential interpreter of the U.S. Constitution.

Public Opinion

The collective attitudes or beliefs of the adult population on various issues, influenced by cultural, societal, and personal factors.

Constitutional Convention

A formal gathering for the purpose of creating or amending a constitution.