When using the RiskMetrics model,price volatility is calculated as

Question

Quizplus · Accepted Answer

According to the RiskMetrics model, price volatility is calculated as the product of price sensitivity and an adverse daily yield move. This is because price sensitivity measures how responsive the price of an asset is to changes in its yield, and an adverse yield move represents a potential change in the yield that could result in a price fluctuation. Therefore, choice A is the best answer. Choices B and C are incorrect because they refer to the dollar value of a position, which is not directly related to price volatility. Choice D is incorrect because it includes an unfamiliar term (F1F1F1S1F1F1F10N) that is not part of the RiskMetrics model.

When Using the RiskMetrics Model,price Volatility Is Calculated as A)the √ \surd√

When Using the RiskMetrics Model,price Volatility Is Calculated as
A)the $\surd$