ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ call Now!

    Question

    Which of the following is correct with respect to

    measurement of sensitivity?
    A This indicates the degree of risk associated with the portfolio against the changes in interest rate Correct Answer Incorrect Answer
    B It does not consider the impact of other parameters Correct Answer Incorrect Answer
    C Sensitivity is more appropriate measurement to measure impact of interest rate changes Correct Answer Incorrect Answer
    D All of the above Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Sensitivity of a portfolio indicates the degree of risk associated with the portfolio against the changes in interest rate.┬а Interest rate sensitivity ┬аis a measure of how much the price of a fixed-income asset will fluctuate as a result of┬а changes ┬аin the┬а interest rate ┬аenvironment.

    Practice Next
    More Financial Management Questions

    Relevant for Exams:

    ask-question