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Basic Question 12 of 12
The monthly standard deviation for a 1-year T-bill is 8.528%. The annualized standard deviation (interest rate volatility) should be:
B. 2.472%
C. 29.54%
A. 0.7107%
B. 2.472%
C. 29.54%
User Contributed Comments 1
| User | Comment |
|---|---|
| Logaritmus | monthly std dev >= yearly std. dev so take C without computation |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
explain how a bond's exposure to each of the factors driving the yield curve can be measured and how these exposures can be used to manage yield curve risks;
explain the maturity structure of yield volatilities and their effect on price volatility.
CFA® 2025 Level II Curriculum, Volume 4, Module 26.