Given That Z Is a Standard Normal Random Variable, Which

question 94

Multiple Choice

Given that Z is a standard normal random variable, which of the following is the value of P(-1.0 Z 1.5) ?

• A) 0.0919
• B) 0.7745
• C) 0.8413
• D) 0.9332

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Definitions:

Duration Rule

A principle that estimates the sensitivity of a bond's price to changes in interest rates, calculated as the weighted average time until a bond's cash flows are received.

Yield

The income return on an investment, such as the interest or dividends received, expressed annually as a percentage of the investment's cost.

Duration

A measure of the sensitivity of a bond's or fixed income portfolio's price to changes in interest rates, typically expressed in years.

Basis Points

A unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument, equal to 1/100th of 1%.