- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 29. The Arbitrage-Free Valuation Framework
- Subject 4. Pathwise Valuation
CFA Practice Question
Under the pathwise valuation approach, the value of the bond is:
B. The geometric average of the values of the bond at each path.
C. The value that occurs most often from all paths (the mode).
A. The arithmetic average of the values of the bond at each path.
B. The geometric average of the values of the bond at each path.
C. The value that occurs most often from all paths (the mode).
Correct Answer: A
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