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Basic Question 0 of 4

What is the Herfindahl Index (HHI) used for?

A. Measuring a company's profitability
B. Assessing market concentration and competition
C. Estimating market demand for a product
D. Analyzing consumer preferences

User Contributed Comments 0

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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

describe the process of calibrating a binomial interest rate tree to match a specific term structure;

describe the backward induction valuation methodology and calculate the value of a fixed-income instrument given its cash flow at each node;

compare pricing using the zero-coupon yield curve with pricing using an arbitrage-free binomial lattice;

CFA® 2025 Level II Curriculum, Volume 4, Module 27.