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Basic Question 7 of 7

The short interest rate is mean reverting in the Vasicek model. This means:

A. Rates revert to a long-time level.
B. Rates are close to the mean.
C. The average of short rates is its mean.

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Learning Outcome Statements

describe term structure models and how they are used.

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