SIE - Securities Industry Essentials Exam
Volatility in a debt portfolio is highest when:
Maturities of the debt securities are shortA
Maturities of the debt securities are longB
Interest rates are steadyC
The stock market is moving higher and with low volatilityD
Short term debt securities are more volatile than longer term debt securities. Steady rates and a low volatility bull market in equities should not make debt securities volatile.