- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 27. The Arbitrage-Free Valuation Framework
- Subject 6. Term Structure Models
CFA Practice Question
Which model is NOT a one-factor model?
B. The Vasicek model
C. They are both one-factor models.
A. The Cox-Ingersoll-Ross Model
B. The Vasicek model
C. They are both one-factor models.
Correct Answer: C
Both assume that a single observable factor drives all yield curve movements.
User Contributed Comments 0
You need to log in first to add your comment.