Which of the Following Are Considered Measures of Association

question 58

Multiple Choice

Which of the following are considered measures of association?

• A)Mean and variance
• B)Variance and correlation
• C)Correlation and covariance
• D)Covariance and variance
• E)First quartile and third quartile

Understand and apply the concept of convexity in bond pricing.

Calculate the duration of zero-coupon bonds.

Understand the impact of coupon rates and maturity on bond duration.

Apply the duration-with-convexity rule for bond price calculation.

---

Definitions:

Marginal Cost

The increment in sum total cost that comes with the production of an additional single unit of a good or service.

Marginal Revenue

The boost in revenue achieved by selling an additional unit of a good or service.

Price Taker

A buyer or seller that is unable to influence the market price of a product or service.

Marginal Revenue Curve

A graphical representation showing how the revenue from selling one more unit of a good or service changes as production volume changes.