Which of the Following Is the Most Likely Reason That

question 16

Multiple Choice

Which of the following is the most likely reason that we need to develop a new flu vaccine every year?

• A) The flu virus evolves due to negative selection.
• B) The flu virus evolves due to positive selection.
• C) The vaccine evolves due to negative selection.
• D) Humans evolve from year to year.
• E) Our immune system degrades over time.

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Definitions:

Price Volatility

The rate at which the price of an asset increases or decreases for a given set of returns, indicative of the risk or stability.

High Coupon

Bonds or debt securities that offer a higher interest rate compared to the market average.

Long Maturity

Long maturity refers to bonds or other fixed-income securities with a longer period until their expiry date, typically associated with greater sensitivity to interest rate changes.

Modified Duration

A measure of the sensitivity of a bond's price to changes in interest rates, reflecting how much the price is expected to change with a 1% move in rates.