SIE Exam Practice Question 932

Question: 932

Which of the following is a measure of the timing of cash flows (i.e., the interest payments and the principal repayment) to be received from a fixed income security? It's used to assess price volatility for changes in interest rates and the reinvestment risk associated with a portfolio.

Correct Answer: B

Explanation:

Duration is a measure of the timing of cash flows (i.e., the interest payments and the principal repayment) to be received from a fixed income security. It's used to assess price volatility for changes in interest rates and the reinvestment risk associated with a portfolio.

All content of site and practice tests © 2022 Jack.
Quick View

FINRA Practice Tests