下面的北美精算师SOA真题系列May2004Course6（第5点），请相关北美精算师赴考人士赶快消化掉。
　　21.
　　ASSERTION
　　Given the choice, investors prefer
　　a portfolio on a higher
　　indifference curve.
　　BECAUSE
　　REASON
　　Higher indifference curves
　　correspond to higher levels of
　　utility.
 
　　22.
　　ASSERTION
　　A callable bond is negatively
　　convex.
　　BECAUSE
　　REASON
　　A call option increases a bond’s
　　effective duration when interest
　　rates fall.
　　Course 6: Spring 2004 - 30 - GO ON TO NEXT PAGE
　　Morning Session
 
　　23.
　　ASSERTION
　　Modified duration is an
　　inappropriate measure for bonds
　　with embedded options.
　　BECAUSE
　　REASON
　　Modified duration assumes a flat
　　yield curve.
 
　　24.
　　ASSERTION
　　Dividend scale guarantees are put
　　options within a participating life
　　insurance policy.
　　BECAUSE
　　REASON
　　A put option gives the purchaser
　　the right to sell at a fixed price.
　　Course 6: Spring 2004 - 31 - GO ON TO NEXT PAGE
　　Morning Session
 
　　25-31. Each of questions 25 through 31 consists of two lists. In the list at the left are two items,
　　lettered X and Y. In the list at the right are three items, numbered I, II, and III. ONE of
　　the lettered items is related in some way to EXACTLY TWO of the numbered items.
　　Indicate the related items using the following answer code:
　　Lettered Item
　　Is Related to Numbered Items
　　(A)
　　X
　　I and II only
　　(B)
　　X
　　II and III only
　　(C)
　　Y
　　I and II only
　　(D)
　　Y
　　I and III only
　　(E)
　　The correct answer is not given by (A), (B), (C) or (D).
　　25. X. Refunding Provision I. Will not provide protection against
　　the issuance of common stock to
　　retire debt.
　　Y. Call Provision II. Bonds cannot be redeemed for any
　　reason.
　　III. Provides redemption protection
　　against the issuance of debt ranking
　　equal to or superior to the debt to be
　　redeemed.
　　26. X. Multivariate density estimation
　　(MDE)
　　I. Chooses points which are as
　　uniformly distributed as possible.
　　Y. Low-discrepancy method II. Can only be used for classes of
　　financial instruments for which
　　liquid markets exist.
　　III. Nonparametric, model-free
　　approach.
　　Course 6: Spring 2004 - 32 - GO ON TO NEXT PAGE
　　Morning Session
　　27. X. Amortized cost method I. Assets held to maturity
　　Y. Market value method II. Assets available for sale
　　III. Assets for trading
　　28. X. Return simulation I. Evaluates the current level of yields
　　by producing spot, discount, and
　　forward rate structures.
　　Y. Term-structure analysis II. Predicts bond and portfolio behavior
　　given alternative interest rate
　　scenario projections.
　　III. Values Treasury securities.
　　29. X. Duration bets I. Pure index match
　　Y. No duration bets II. Minor mismatches
　　III. Full-blown active
　　Course 6: Spring 2004 - 33 - GO ON TO NEXT PAGE
　　Morning Session
　　25-31. Each of questions 30 through 31 consists of two lists. In the list at the left are two items,
　　lettered X and Y. In the list at the right are three items, numbered I, II, and III. ONE of
　　the lettered items is related in some way to EXACTLY TWO of the numbered items.
　　Indicate the related items using the following answer code:
　　Lettered Item
　　Is Related to Numbered Items
　　(A)
　　X
　　I and II only
　　(B)
　　X
　　II and III only
　　(C)
　　Y
　　I and II only
　　(D)
　　Y
　　I and III only
　　(E)
　　The correct answer is not given by (A), (B), (C) or (D).
　　高顿网校之精品语录：三人行，必有我师也。择其善者而从之，其不善者而改之。——孔子