Knowledge Base

Which sector is generally associated with a beta coefficient of 0.3?

Automotive sector

Healthcare sector

Technology sector

Energy sector

Which article of the AMF General Regulation specifies the calculation methods for the amplification capacity of financial contracts?

Article 411-44-3

Article 411-44-4

Article 411-45-2

Article 412-33-7

What is the meaning of a beta coefficient of 1.4 for a security?

The security is twice as volatile as the market

The security amplifies market movements by 40%

The security is half as volatile as the market

The security does not react to market movements

What formula is used to calculate modified duration?

(Macaulay duration) / (1 + interest rate)

(Macaulay duration) * (1 + interest rate)

(Market variance) / (Security covariance)

(Security return) - (Market return)

Categorize items by dragging them to the appropriate zones

Items to categorize:

Stock with a beta of 1.4

Bond with a sensitivity of five

Derivative contract with a delta of 0.8

Categories:

Beta coefficient

Duration and interest rate sensitivity

Delta

Modified duration

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Macaulay duration is the weighted average of the maturities of discounted cash flows, expressed in years.

True

False

A delta of 0.8 for a derivative means the position is equivalent to 80% of the underlying asset.

True

False