Sample Questions

1 According to research and Principal Component Analysis, the two principal component of volatility of rates in the term structure of Interest Rates are: a) Level of rates and slope of term structure b) Level of rates and curvature of term structure c) The slope and curvature of the term structure d) The minimum and maximum points on the term structure 2 In “Mean-Variance” portfolio: a) Efficient Frontier shows “graphs” of expected Portfolio return and SD for all possible outcome of the risky asset b) The Efficient Frontier is a straight line c) The CML shows the combination of expected Portfolio return and (portfolio) SD for a combination of Risky Assets and Risk Less Asset d) The EF is a curved relationship between the portfolio return of risky asset and SD of risk free asset

  1. c