CFA Practice Question

There are 147 practice questions for this study session.

CFA Practice Question

An analyst observes that the daily standard deviation of yields has been 2.8% for a 5-year corporate bond. If there were 250 trading days in a year, what would be this bond yield's equivalent annual standard deviation?
A. 24.6%
B. 36.9%
C. 44.3%
Explanation: σannual = σdialyn1/2 = 2.8% x 2501/2 = 44.3%.

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