Business, 24.06.2021 18:20 smrichardson0220

Which of the following statements is correct Question 4 options: Mean reversion refers to the fact that, due to law of one price, the mean of the bond price of different maturities tent to the same level in the long run. Mean reversion refers to the fact that interest rates tend to decrease when the rate is high and to increase when it is low. Mean reversion refers to the fact that, just like stock, interest rates tend to have an increasing trend. Mean reversion refers to the fact that interest rates tend to increase when they are high and to decrease when they are low. Mean reversion refers to the fact that, unlike stock, interest rates tend to have a decreasing trend. Mean reversion refers to the fact that, due to law of one price, the mean of the bond yield of different maturities tent to the same level in the long run. Mean reversion refers to the fact that interest rates tend to converge to an increasing long term mean.

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Which of the following statements is correct Question 4 options: Mean reversion refers to the fact t...

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