James Johnson bought a 3-year plain vanilla bond that has yield of 4.7% and 4% coupon paid annually, for
$87,139. Macauley's duration of the bond is 2.94 years. Rate volatility is 20% of the yield. The bond's
annualized volatility is therefore:

Which one of the following four statements represents a possible disadvantage of using total return swap to
manage equity portfolio risks?

From a risk point of view, which of the following factors will generally lead to the fluctuation of equity values
with industry P/E levels and a company's individual earnings?
I. Sales
II. Cost management
III. Commercial success of the company
IV. Market sentiment

The main building blocks of an operational risk framework include all of the following options EXCEPT:

By lowering the spread on lower credit quality borrowers, the bank will typically achieve all of the following
outcomes EXCEPT: