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NEW QUESTION: 1
Which of these is a valid response to negative risks?
A. Share.
B. Exploit.
C. Mitigate.
D. Enhance.
Answer: C
NEW QUESTION: 2
A shipping company uses a Pega application for order processing and fulfillment.
* The Membership level locally-sourced data type indicates the membership level of the customer.
* The Address data type is used to verify the customer-entered billing and shipping addresses against a Comprehensive database of postal addresses.
* The Delivery preference data type specifies whether the customer prefers the delivery person to call the
Customer or ring the doorbell when dropping off a package.
In the graphic below, choose the appropriate data type based on how it is sourced.
Answer:
Explanation:
NEW QUESTION: 3
Which of the following interpretations of duration and convexity is true?
I). Effective duration does not take into account the bond price's sensitivity to credit risk.
II). Portfolio convexity is the weighted average of the individual bonds' convexities.
III). Portfolio convexity will only provide meaningful figures for changes in portfolio value, if there is a parallel shift in the yield curve.
IV). As long as their duration is the same, a bullet and barbell portfolio will always exhibit the same degree of interest rate risk.
A. I, II, III and IV.
B. II, III and IV.
C. I, II and III.
Answer: C
Explanation:
(IV) is incorrect because a bullet and barbell portfolio, with the same duration, will only exhibit the same degree of interest rate risk if the yield curve shift is parallel. Otherwise, regardless of whether the durations are the same or not, a non-paralleled movement in the yield curve will result in different degrees of price changes for the two portfolios.
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