If a Financial Institution Has 50 Percent of Its Portfolio

question 55

Multiple Choice

If a financial institution has 50 percent of its portfolio in a bond with a five-year duration and 50 percent of its portfolio in a bond with a seven-year duration, what is the duration of the portfolio?

• A) 12 years
• B) 7 years
• C) 6 years
• D) 5 years

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Definitions:

ATP

For metabolism within cells, adenosine triphosphate acts as the vital molecule carrying energy.

Meselson And Stahl

Two scientists who conducted an experiment in 1958 proving that DNA replication is semi-conservative, where each of the two strands of the DNA helix serves as a template for the new strand.

Telomeres

The protective end caps of chromosomes that consist of short, simple, non-coding DNA sequences that repeat many times.

Centromeres

Centromeres are regions on a chromosome where spindle fibers attach during cell division, serving as a constriction point that holds sister chromatids together.