Portfolio Management Quiz

Câu 1: ......... is an appropriate objective for investors who want their portfolio to grow in real
terms,
i.e., exceed the rate of inflation.:
a. Portfolio growth b. Capital preservation
c. Capital appreciation Value additivity

Câu 2: An asset is li 1 if it can be ..... onverted to cash at a pr e close to ma et value.

a. quickly, lower q a. underpriced has an expected ected rate of ret
1976
c. slowly, lower s c. fairly priced
d market rate of
n stor tend, o: n services belong t
Câu 3: A 20-year-ol Câu 7: The risk- m
a. Invest in treasure b free rate is 5%.
c. Use high leverage The expe
wly, fair

Câu 4: The most of stomers using pe o

a. Individual stock in stors

c. Low-income class

te f return of 0.11. has a beta of

Câu 5: Undiversifia I wealth manage 1.5.
a. Systematic risk b. High-in n 0.09. Accordin the Capital
c. Unsystematic risk class d. Asset
ddle-in s i d fro ta provided

Câu 6: Your person pinion is that a oc

turn is 15%. If you expect a stock with
The risk-free rate is 5 and the mark e
Pricing Model, this se ity is: S Clf

a beta of 1.2 to offer a rate of return of 20%, should:

a. sell the stock because it is underpriced. b. bu stock because it is overpriced.
c. sell the stock because it is overpriced. d. buy the stock because it is underpriced.
Câu 8: If you believe in the . . .. . . . . . form of the efficient market hypotheses, you believe that
stock prices reflect all relevant information, including historical stock prices and current public
information about the firm, but not information that is available only to insiders.
a. very weak b. semistrong c. strong d. weak

Câu 9: The evidence of ra -walk i stock price is the eviden a.

of all forms of the E cient Market H thesis
b. of the strong-form Iciency of the E ie

c. against the weak-f es

d. against the semistr ci ft a

Câu 10: A substituti g n

profit from apparen ispricing betwe t o bonds.

b. change the credit r of a portfolio.

c. reduce the duratio f rt

d. extend the duratio

Câu 11: Assume tha ac ti 4 . What should be the constant growth

c. 9% (loai)

Câu 12: The capital a cation line can e escribed as the a.

investment opportunity s or-med with ky assets.

b. line on which lie all port that off th 1976 ar invest

c. investment opportunity set fo h ris s fre et.
d. line on which lie all portfolios with the expected rate of and different standard deviations.

Câu 13: Which of the following statements is true risk

a. Risks are deviations from expectations. The larger the price fluctuation range, the greater the
risk.
b. Risks are deviations from expectations
c. The larger the price fluctuation range, the greater the risk
d. The larger the price fluctuation range, the smaller the risk

Câu 14: At the beginning of 2019, investor A bought FPT shares at the price of 50,000
VND/share. At the beginning of 2022, investor A sells for 75,000 VIND/share. What is the
compound annual rate of return?
a. 15.19 % b. 15.67 % c. 1 3.12 %

Câu 15: At the begi ing of 2019, inve nd at the price VND 80,000. The
interest payments a paid at the end f ch year. At the gi ing of 2022, inv tor A sells at the
price of VIND th m und annual rate
110,0
of return (YTM) if a ts ei 00 b. 18.76% c.
20,28 0/0 d. 22,31 0/0

Câu 16: Asset 1 ha (RI) = 0.12 an E andard Deviatio 0.04. Asset 2 has (R2) = 0.16 and
E(Standard Deviati ) = 0.06. Calcul e expected retu a expected stand d deviation of a
twostock portfolio en r1 2 = , -0 .60 a = 0.75
a. 0.13 and 0.0455 (1 i) b. 0.13 an o. 24
c. 0.12 and 0.5585 2 an o.

Câu 17: Which oft ts S t m re 3

a. Fama-French 3 fa r mo re el e to market value
into the CAPM m
b. The Fama-French ac o I assu s at the re of an v men o de lids on the
market
factor, firm size fa r, an ook-to-m e actor.

c. The Farm-French 3 ctor model still Id at a high rate of u is a reward for • h risk taking
d. Fama-French 3 facto Odel adds 2 o factors, namely q ity ratio an 00k value to market
value into the CAPM el.

1976
Câu 18: The weak form of the effici a et hypothesis ass t
a. stock prices do not rapidly adjust to ne ormation cont d in past prices or past data, and future
changes in stock prices cannot be predicted ast pric
b. future changes in stock prices cannot be predicte from past prices, and technicians cannot
expect to outperform the market
c. stock prices do not rapidly adjust to new information contained in past prices or past data
d. future changes in stock prices cannot be predicted from past prices
Câu 19: Suppose an investor has inside information about the sudden profit of a business, he
believes that he can make a profit by buying shares at the present time to wait until the company
announces the news to sell shares. As his expectation, when announcing the news the stock price
increase. This market is:
a. Strong form of efficient marke
b. Weak form and Semi form o fficient market
c. Semi strong form efficient market

d. Weak form of effi nt market

Câu 20: If the econ g, ig a wi e n

a. smaller increases i r Its than fi e b. e profits

c. higher increases i profits than firm low operating le r e

d. similar increases i rofits as firms wi 10 operating leverag

Câu 21: Suppose th ri 6 . The beta of a n ed portfolio is 1. the alpha is 3%, and the average re su
ance, you would calculate the return t

Câu 22: fo the underlying determinants of fut e pr • lty.

a. Technical analyst b. Systems analy
c. Credit analysts damental analyst

Câu 23: According to the 1976 o he follo investments dominates all others?

a. E(r) 0.15, 0.25 b. E(r) = 0.10, o o.

c. E(r) = 0.10, o = 0.25 E(r) = 0.15 0.20

Câu 24: If stock X has beta = 1.50, the level of risk of X is 50 percent than the average for
the entire market
a. nonsystematic, greater b. systematic, greater
c. systematic, lower d. nonsystematic, lower
Câu 25: Which of the following statements is false about "Duration"? (k chic nha) a.
"Duration" is the average maturity time of the bond (loai)
b. If the cash flow is received annualllow, and the payback pe d from the cash flow will be longer,

leading to an increase in "Durat•

c. "Modified Duration" is u o measur the risk of interest rates o ond pr1C ai)
d. "Duration" is th second derivativ of the formula which lculates the bo price using the
discount rate
Câu 25': Which of t f 110 st nt ut io
1. Duration is a revis tu c rit payments. Il.
Duration of a 3-year ro o 3
Ill. Duration of a po he ividual securities.
IV. A 30-year 5% co on bond has a Ion ration than a 30-y 0 mortgage.
A. 11 and 111 B. 11, 1

C. 1, 11, and 111 I an 1

Câu 26: Company 1 VND/ ck last i e spend 40% of its
income to pay divid m ed rate of return
is 12%, what shoul e t ue o th oc
a. 12,500 VND 1 O VND

Câu 27: There are ve (o) = 5%; B has

E(r) = 21%, = 11 (r According to the
meanvariance crite f the s te ents below is co c a. Investment D minates all of the
other investments. (10
b. Investment D doml es only investm
c. Investment B domina investment A. 10

d. Investment B dominates estment C

1976
Câu 28: Investor A buys 100 00 N are. After that, VNM pays a
dividend of 30% in cash and 20% 1 re At the end of th e r
estors sell all shares at the price
of 100,000 VND/share. The rate of return i
a. 50.32 % (loai) b. 35.
c. 40.21 % d. 53.75

Câu 29: In a two-stock portfolio, if the correlation coefficient between two stocks were to decrease over
time, everything else remaining constant, the portfolio's risk would:
a. increase. b. remain constant.
c. fluctuate positively and negatively. d. decrease.

Câu 30: Given investments A (Expected Return = 12.2%, Standard Deviation = 7%) and B (Expected
Return = 8.8%, Standard Deviation = 5%), which one would you prefer and why? a. Investment B
because it has the lowest absolute risk.
b. Investment A because it has
the 10
c. Investment B because it has
d. Investment A becaus

Câu 31: With resp tements

is most accurate? a.
Portfo
b. All of the options
c. Portfolios affect ri,
d. Portfolios affect ri,

Câu 32: Consider tefficient of

0.65.
Security A has stan dard
deviation o 25. Calculate the
covariance between
a. 261.54

Câu 33: Assume thay index

YYY.
The expected retu0/0 and
16.21%, respectively.
Thosen the covariance of
returns betweenquity
index XXX to get 12% of
the ex

Câu 34: Which of th folio

a. sector rotation
c. use of factor models

Câu 35: Measures of risk variance

of returns and busine
b. coefficient of variation of re
c. variance of returns and coefficient
d. business risk and financial risk.

Câu 36: Ceteris paribus, the duration of a bond is positively correlated with the bond's:
a. All of the options are correct. b. coupon rate.
d. yield to
c. time to maturity. maturity.
Câu 37: The intercept of the best fit line formed by plotting the excess returns of a manager's
portfolio on the excess returns of the market is best described as Jensen's
a. Sigma b. Beta c. Alpha d. All of the above are wrong

Câu hói 1: Which

of the follo a
capital
appreciation
C. current income

Câu hói 2: A
securit Risk of a
security ma
b. All of the
options
c. Security
market,
d. Security
market as
whole

Câu hói 3: Importa a. It

helps the investal markets and the
risks of investing
b. All of the above a
c. Protects the clientehavior
d. It creates a standar

Câu höi 4: The ints of a

manager's
portfolio on the exces eturns of the
a. Sigma b. Alpha

Câu 5: With respect to the e effect only past prices then the market is:
a. Strong-form efficient
c. All of the above are wrong
Câu höi 5: We have following bonds: A coupon rate = 15%, maturity = 20 year, YTM = 10%), B
(coupon rate = 15%, maturity = 15 year, YTM = 10%), C (coupon rate = 0%, maturity = 20 year,
YTM = 10%), D (coupon rate = 8%, maturity = 20 year, YTM = 10%) and E (coupon rate = 15%,
maturity = 15 year, YTM = 15%). Sort in descending "Duration" order:
a. There is no correct answer
C.C > D > A > E

Câu hói 6: Which of the following portfolio performance measures does not require comparisons
with other values?
a. Sharpe ratio b. Treynor

c. Alpha Jensen d. All of the a ve are false

Câu hói 7: Which f the following t e best reason fo a investor to be c cerned with the composition of a po
a. Hazard eliminatio
c. Avoidance of finan al ris

Câu hói 8:As the nu ber of securities a ortfolio increases h mount of system ic risk:
a decreases. b. chang c. remains co st t. d. ses.

Câu hói 9: Firm CT h w h of the followin st e ts •

If the market portfoli s st k

b. If the market por lio the to 50

c. If the market portf k

d. CTD stock has hig 1 10

1. The line depictin the ri nd ret n portfolio combi ti s of a risk-free et and any risky asset is the:
A. security market Ime.

B. capital allocation line.

C. security characteristic line.1976

2. The portfolio of a risk-free asset and a r y asset has a b r risk-return tradeoff than
investing in only one asset type because the correlation b en the ree asset and the risky asset
is equal to:
A. -1.0. B. 0.0. c. 1.0.
3. With respect to capital market theory, an investor's optimal portfolio is the combination of a
riskfree asset and a risky asset with the highest: A. expected return.
B. indifference curve.
C. capital allocation line slope.

4. Highly risk-averse investors will most likely invest the majority of their wealth in:
A. risky assets. s ree assets
5. The capital mar t line, CML, is h
e
consisting of the ris ree asset and:
A. any risky portfoli
C. the leveraged port li

6. Which of the foil

theory? The market
A. risky assets. B. tradable as ts

7. With respec to capita

portfolio: A. is the rket po
C. has the lowest exp t
tf c L,
8. Relative to p
inferior. B. inefficie

t ar
9. A portfolio o
portfolio represents
A. lending portfolio. B. bor

n
10. With respect to t apital market
on the market portfolio presents a(n
graph of the risk a return of por lio
combinations
B. the market p tf o.

n capital market
C. invest e sets.

market the opti I risky

 B. has th ig st expected retu

is considered:
P o t
A.

n e s on the market

g portfolio. . unachievable po olio.

a portfolio on th with returns s than the returns

1976
. unachie e portfolio

is most likely av d forming a diversified

risk. C. Non ematic risk.
A. lending portfolio. B. borr

11. Which of the following types is portfolio? A. Total risk. B. System

12. Which of the following events is most likely an example of nonsystematic risk? A. A decline in
interest rates.
B. The resignation of chief executive officer.
C. An increase in the value of the U.S. dollar.

13. With respect to the pricing of risk in capital market theory, which of the following statements
is most accurate?
A. All risk is
priced. C.
Nonsystematic
risk is priced.

14. The sum

of an a
ns is
equal to the
asset's:
A. beta.
15. With respect to del is the asset's estimated:
A. beta.

16. With respect to market model i n estimate of the asset's:

A. total risk.

17. With
Which respect
security to etu
has most accurate?
Return-generating
A. expected return o.
C. parameters of the

18. An analyst gathers e following info a

Security Expected Ann
Expected Standard Deviat
Security 1 I l 25 0.6
Security 3 14 20 0.8

A. Security 1.

19. An analyst gathers the following information:

Security Expected Annual Return ( 0/0)
Expected Standard Deviation (0/0) Correlation between Security and the Market
Security 1 Il 25 0.6 Security 2 Il 20 0.7
Security 3 14 20 0.8 Market 10 15 1.0
Which security has the highest beta measure?
A. Security l. B. Security 2. C. Security 3.

20. An analyst gathers

Security Expected
0
Annual Return ( /0) E
Standard Deviation (
Security 1 25 0.6
Which security has
A. Security l.

21. With respect to

A. less than 1.0.

22. The slope oft-he

A. beta.

23. The graph of th

A. capital market lin
C. security characteri

24. With respect to

A. capital market line
C. capital allocation
The security market use the total risk of
the asset (or portfolio

25. With respect to expected return of an

individual asset is the:
A. asset'sbeta.

is:

tted on the:

that is priced.
26. With respect to the capital asset pricing model, which of the following values of beta for an
asset is most likely to have an expected return for the asset that is less than the riskfree rate?
A. —0.5 B. 0.0 c. 0.5
27. With respect to the capital asset pricing model, the market risk premium is: A. less
than the excess market return.
B. equal to the excess market return.
C. greater than the excess market

28. An analyst gather he following info ation:

Security Expected ) Beta
Security 1 25 1.50 Securi 2 1.40 curity 3 20 1.60
With respect to the c od rk s o and the risk-
free
rate is 3%, the expec d t ty 10
A. 9.0%. B. 12.0% 3

29. An analyst gather h a

Security Expected
Stand iation (0/0) Beta
Security 1 25 1.50 Security 2 15 40 it 3 20 1.60
With respect to the c o l, if expected retu f Security 2 is equ to 11.4% and the
riskfree rate is 3%, t e r e mark is close to
A. 8.4%. 9. 1 .3 0 0.

30. An analyst gather

Security Expected o
d
Security 1: 25 1.50 curity 3 o .60
With respect to the c •tal asset pricing
O , if the expected a et risk premiu s 6% the
with the highest expe d return is: security
A. Security l. . Security 2 C. c

31. An analyst gathers the follo info a

1976
Security Expected d Deviation (0/0) et
Security 1: 25 1.50 Security 2: 15 1.4 0 1.60
Security
With respect to the capital asset pricing model, a m the expected market return will have the greatest
impact on the expected return of:
A. Security I. B. Security 2. C. Security 3.
32. Which of the following performance measures is consistent with the CAPM? A. Msquared.
B. Sharpe ratio. C. Jensen's alpha.

33. Which of
the following
performance
measures does
not require the
measure to be eturnsgenerated
compared to
another value?
A. Sharpe ratio.

34. Analysts who

ha by the capital
asset
A. overvalued.

35. The
intercept of the
excess returns o
A. beta.

36. Portfolio
manag with:
A. lower values
of Je
B. values of
Jensen's
C. higher values
of

37. Portfolio
manag with:
estimated retur
 er's portfolio on s who a ore in securities

pha

s, less in securities
A. lower values for no ystematic varvan
B. values of nonsystem

C. higher values for nons matic var n

1. The duration of a bond is a func

A. coupon rate.
C. time to maturity.

5. Holding other factors constant, the interest-rate risk of a coupon bond is higher when the
bond's:
A. term-to-maturity is higher. B. coupon rate is higher.
C. yield to maturity is higher. D. All of these are correct.

7. Holding other factors constant, the interest-rate risk of a coupon bond is lower when the bond's:
A.
term-to-maturity is lower. B. coupon rate is higher.
C. yield to maturity is lower.

D. term-to-maturity is low d coup

rate is higher.
ation" used by p e acaulay duratio
10. The "modified d c
re te.
times the change in i
o d's to
B. times (one plus th rit
C. divided by (one m o
D. divided by (one p s o t

12. Given the time t aturity, the dur io of a zero-coupon o is higher when t discount rate is
A. higher. C. equal h •sk free rate.
D. The bond's dura n e
ft
t discou rate.

13. The interest-rat

A. the risk related to
B. the risk that aris eO r c interest rates.
C. the unsystematic r cau a factor n ue in ond.
D. the risk related to e possibility of n ptcy of the bon uer and the risk at arises from the
uncertainty of the b d's return cause y anges in interest e

16. Which of the following ot true?

1976
A. Holding other things constant, durio tim aturity.

B. Given time to maturity, the durati f zero-coupon dec s ith yield to maturity.
C. Given time to maturity and yield to matu the duration a bond is higher when the coupon rate is
lower.
D. Duration is a better measure of price sensitivity to interest rate changes than is time to maturity.

17. Which of the following is true?

A. Holding other things constant, the duration of a bond decreases with time to maturity.
B. Given time to maturity, the duration of a zero-coupon increases with yield to maturity.
C. Given time to maturity and yield to maturity, the duration of a bond is higher when the coupon rate is
lower.
D. Duration IS a better measure of sitivity to interest rate ch n is time to maturity.

E. Given time to maturi yield t maturity, the duration a bon i her when the coupon rate is lower,
an a ion is a be r measure of price sensi ity to interes changes than is time to maturity.

18. The duration of 5smaller

than 5.
C. equal to 5.

19. The basic purpo of immunization eliminate

default risk
B. produce a zero ne te k.
C. offset price and re

D. eliminate default r a z te st a ris

E. produce a zero n n S ic is

24. Which of the fol st at

An 8-year maturity, 0 cou nd.
B. An 8-year maturi % coupon bond.
C. A 10-year maturity, coupon bond.
D. A 10-year maturity, O oupon bon

1976
25. Which one of the following pa % coupon bond x ces a price change of $23 when the market yield
changes by 50 basis pmnt A. The bond wi duration of 6 years.
B. The bond with a duration of 5 years.
C. The bond with a duration of 2.7 years.
D. The bond with a duration of 5.15 years.

26. Which one of the following statements is true concerning the duration of a perpetuity?
A. The duration of 15% yield perpetuity that pays $100 annually is longer than that of a 15% yield
perpetuity that pays $200 annually.
B. The duration of a 15% yield perpetuity that pays $100 annually is shorter than that of a 15% yield
perpetuity that pays $200 annually.

C. The duration of a 15% yield uity that pays $100 an is equal to that of 15% yield perpetuity that
pays $200 a ally.
D. The duration of a cannot be alculated.

27. Which one of th ollowing stateme s a se concermng e ration of a perp

The duration 1 it u t of a 15% yield
perpetuity that pays O n

B. The duration at of a 15% yield

perpetuity that pays O n
c. The duration a 15% yield p e ty that pays $10 a ually is equal to at of 15% yield perpetuity that pays 00
annually.

D. The duration yield erp ui that pays SIOO a u ly is longer than at of a 15% yield perpetuity that
pa. n the duration of 1 o yield perpetu• that pays $100 annually is shorter •el perpet that p S n

28. The two compon ri

A. price risk and def st sk

C. call risk and price ri

29. The duration of oupon bond

A. does not change aft the bond is issu

B. can accurately predict price chang f e bond fo y int es te change.

C. will decrease as the yield aturity cr s1976

D. All of these are correct. ne o ese IS cor c

30. Indexing of bond portfolios is difficult b se

A. the number of bonds included in the major indexe o large that it would be difficult to purchase them in
the proper proportions.

B. many bonds are thinly traded so it is difficult to purchase them at a fair market price.
C. the composition of bond indexes is constantly changing.
D. All of these are correct.

32. Duration measures

E. None of these is correct.
A. weighted average time until a bond's half-life.

B. weighted average time until c no payment.

C. the time required to ma essive p fit from the investment.

D. weighted average e until a bond's alf-life and the time requ ed to make exces e profit from the
investment.
E. weighted average e until cash flo a ent and the time q ed to make exce ve profit from the investment.

33. Duration
A. assesses the time ment of bon s in of bo upon te to maturity.
B. allows structuring portfolio to avoid te st-rate risk.

C. is a direct compari n betwe nd i ith different leve o sk.

D. assesses the tim 1 t in erms of both co o and term to m urity and allows
structuring a por 01 st t
E. assesses the time leonds n S ot co n t at and is a direct comparison betwe
if ris

34. Identify the bon no a

A. 20-year maturity an upon. 20-yea pon.
C. 20-year maturity •th a 0% coupon D. 10-yea rity with a 15% pon.
E. 12-year maturity wit 12% coupon.

35. When interest rates dec the du ti 1976 se •ng at a mium

A. increases. B. decr C. remain h
D. increases at first, then declines. E. decre a first, then increases.

38. One way that banks can reduce the duration o r asset portfolios is through the use of
A. fixed rate mortgages. B. adjustable rate mortgages.
C. certificates of deposit. D. short-term borrowing.
39. The duration of a bond normally increases with an increase in
A. term to maturity. B. yield to maturity.
C. coupon rate. D. All of these are correct.

40. Which one of the following i rrect statement concerni g tion? A.

The higher the yield to ma , the g ater the duration.

B. The higher the co on, the shorter the uration.

C. The difference in ration is small be ee er t coupons each m ring in more than 15 years.

D. The duration is th I t rl ca

41. Which one of th 01 a ct en o g on.

A. The higher the yie to maturity, theat the duration

B. The higher the co on, the shorter the ur ion.

C. The difference in ation c larg be een two bonds w• d ferent coupons ea maturing in more than 15 years.
D. The duration is th a o c,
E. The higher the c PO rter he r o th in a c be large between two bonds with c r 15 ars, e duration
is the
same as term to

42. Immunization is Ota y passi s ategy ecause

A. it requires choosin n asset portfolio at atches an index.

B. there is likely to beap between the11 s of assets and lia iti in most portfol

C. it requires frequent r lancing as t t t change.

D. durations of assets and liab s fall a h 1976

43. Some of the problems with immunizati are A.
duration assumes that the yield curve is flat.

B. duration assumes that if shifts in the yield curve occ , these shifts are parallel.

C. immunization is valid for one interest rate change only.

D. durations and horizon dates change by the same amounts with the passage of time.
E. duration assumes that the yield curve is flat, duration assumes that if shifts in the yield curve
occur, these shifts are parallel, and immunization is valid for one interest rate change only.

44. If a bond portfolio manager believes

A. in market efficiency,
he or she is

B. that he or she can accurat

to be an active
portfolio
manager.

C. that he or she can

folio manager.

D. in market efficie
at he or she can
accurately predi
manager.
E. in market efficien
he can accurately
 predict interest ra that he or she can
identify bond mar
bond's A.

45. Cash flow matc

immunization.
C. dedication.

46. Immunization e ineffective or inappropriate beca

A. conventional dura
B. duration matching

C. immunization onl Ilow for inflation adjustment.

D. conventional duratirotects the nominal value of terminal liab se are correct.

47. The curvature of the price-

modified duration.
D. convexity.

50. A rate anticipation swap is an exchange of bonds undertaken to

A. shift portfolio duration in response to an anticipated change in interest rates.

B. shift between corporate and government bonds when the yield spread is out of line with historical
values.
C. profit from apparent mispricing between two bonds.
D. change the credit risk of the portfolio.

E. increase return by shifting into higher yield bonds.

51. An analyst who selects a pa la holding period and pred ts ield curve at the end of that
holding period is engaging
A. a rate anticipation ap. B. immunization.
C. horizon analysis. ad swap.
52. Interest-rate ris s
active bond portfolio gers.
B. passive bond port S.
C. both active and p sive bond portfo nagers.
D. neither active nor ssive bond portfo nagers.
E. obsessive bond po olio ma
53. Which fol wi t er st
Bond prices and yiel lat
Il) Prices of long-te st ices of short-term
bonds. Ill) Interest- rel e he O
IV) The sensitivity o ce o ch ge 1 to a ity 1 re ted to the yield to
maturity at which the ond is ently s In
A. I and Il B and 111 1, and IV D. 11, 111,
54. Which of the follo are false ab t e interest-rate se •ty of bonds?
Bond prices and yields are rsely relat
Il) Prices of long-term bonds to b m 1976 st te c es than prices of short-term
bonds. Ill) Interest-rate risk is directl e o the bond's coup
IV) The sensitivity of a bond's price to a ch e in its yield to aturity is inversely related to the yield to
maturity at which the bond is currently selling.
B. 111 C. 1, 11, and IV

56. According to the duration concept

A. only coupon payments matter.
11, 111, and IV E. 1, 11, 111, and IV