PRMIA Related Exams
8006 Exam

The relationship between covariance and correlation for two assets x and y is expressed by which of the following equations (where covarx,y is the covariance between x and y, σx and σy are the respective standard deviations and ρx,y is the correlation between x and y):
A)
B)
C)
D)
None of the above
A bond has a Macaulay duration of 6 years. The yield to maturity for this bond is currently 5%. If interest rates rise across the curve by 10 basis points, what is the impact on the price of the bond?
Which of the following statements is not true about covered calls on stocks