- CFA Exams
- CFA Level I Exam
- Study Session 12. Fixed Income (1)
- Reading 32. The Term Structure and Interest Rate Dynamics
- Subject 7. Yield Curve Factor Models
CFA Practice Question
The least important factor in explaining changes in the yield curve has been found to be:
A. level
B. curvature
C. steepness
Explanation: In the textbook example, the curvature was found to explain about 3% of the total variance.
User Contributed Comments 2
| User | Comment |
|---|---|
| akirchner1 | Level - 75% Steepness - 17% Curvature 3% |
| JZERMENO | Thanks akirchner. Good luck! |