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fixed income quiz

which comment is false?
A mean reversion analysis can be instructive as well as misleading
B percent yield spread analysis understates the risk as well as the comparable attractiveness of the credit bond
C percent yield spread is more a derivative than predictive variable

C

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answer is B percent yield spread analysis overstates the risk as well as the comparable attractiveness of the credit bond

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good question.

I would choose c if I just read first 3 answers...a typical prudent trap.

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