The ________ of a financial asset to a change in the required yield will not be the same for all assets.

Question

Quizplus · Accepted Answer

Price sensitivity refers to how much a financial asset's price will change in response to a change in the required yield. Different assets will have different levels of price sensitivity, meaning their prices will react differently to changes in yield. Therefore, option C is the correct choice. Price indifference and insensitivity are not commonly used terms in finance. Cash flow sensitivity refers to how changes in interest rates can affect cash flows for certain investments, but it is not directly related to the question asked.

The ________ of a Financial Asset to a Change in the Required