The High Risk of Long-Term Low Volatility

The High Risk of Long-Term Low Volatility

Assessment

Interactive Video

Business

University

Hard

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The video discusses the historically low volatility in the S&P 500, comparing it to past periods like 1995 and 2006. It highlights current market risks, particularly in the sovereign bond market, and suggests strategies for managing these risks, such as buying options. The discussion also covers global economic risks, including Brexit and commodity price fluctuations, emphasizing the importance of hedging against uncertainties.

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5 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What historical context is provided regarding the low level of volatility observed in the market?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What are the implications of the VIX trading below 10 in 2006?

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3.

OPEN ENDED QUESTION

3 mins • 1 pt

How does the current sovereign bond market compare to past market conditions according to the text?

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4.

OPEN ENDED QUESTION

3 mins • 1 pt

What strategies are suggested for positioning in uncertain markets?

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5.

OPEN ENDED QUESTION

3 mins • 1 pt

What risks are associated with the current bond market as discussed in the text?

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