Assume the Market Value of a Position Is $100 000

question 46

Multiple Choice

Assume the market value of a position is $100 000 and that its modified duration is 3.30 years.Further assume that the potential adverse move in yield is 16.5 basis points.What are the daily earnings at risk for this position (round to two decimals) ?

• A)$54.45
• B)$544.50
• C)$54,450.00
• D)There is not enough information to solve the question.

---

Definitions:

Provide Less Value

The act or process of delivering products, services, or outcomes that are perceived to be of lower benefit or importance compared to expectations or alternatives.

Group

A collection of individuals who interact with one another, share similar characteristics, and collectively have a sense of unity.

Prototypical Members

Individuals within a group who embody the most representative or characteristic qualities of that group.

Peripheral Representative

An individual within a group or organization who holds a marginal or outward position, often tasked with liaison roles or representing the group to external entities.