If you have Japanese government bond, the value of the bond often fluctuates.

Which explanation is correct?

1. Because only denominators (r) may change.
2. Because only numerators (C₁, C₂, C_n ) may change.
3. Because both numerators (C₁, C₂, C_n ) and denominators (r) may change.

(10) If you have Toyota Motors stocks, the value of the stock price often fluctuates. Which explanation is correct?

1. Because only denominators (r) may change.
2. Because only numerators (C₁, C₂, C_n ) may change.
3. Because both numerators (C₁, C₂, C_n ) and denominators (r) may change.

(11) Here are 3 explanations to show the characteristics of a company which has of above 1 (one). Choose an wrong answer.

1. The volatility of the stock prices is higher than average companies.
2. The volatility of the sales and profit is lower than average companies.
3. The industry which the company belongs to tends to have higher volatility of sales and profit than average industries.