-If the numerical value of the VIX rises,
A)
Investor fear has diminished

B) investors are becoming more complacent
C) securities prices are more volatile
D) yields on securities have increased

Question

-​If the numerical value of the VIX rises,
A) ​
Investor fear has diminished
​
​
B) ​investors are becoming more complacent
C) ​securities prices are more volatile
D) ​yields on securities have increased

Quizplus · Accepted Answer

The VIX is a measure of volatility in the stock market, specifically the expected volatility over the next 30 days. When the numerical value of the VIX rises, it indicates that there is an expectation for greater volatility in the market. Therefore, choice C is the correct answer. Choices A and B cannot be correct since a rise in the VIX implies greater fear and uncertainty among investors, not diminished fear or increased complacency. Choice D is also incorrect since the VIX is not directly related to yields on securities.

-​If the Numerical Value of the VIX Rises

-If the Numerical Value of the VIX Rises