What Is the Weighted Average Duration of the Assets of the FI

question 27

Multiple Choice

What is the weighted average duration of the assets of the FI?

• A)7.25 years.
• B)7.75 years.
• C)8.25 years.
• D)8.75 years.
• E)9.25 years.
• [Refer to: 9-121]

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Definitions:

Cost Method

An accounting method used to value investments, where the investment is recorded at cost and adjustments are made for dividends received or additional investments made.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee but not control those policies.

Cost Method

An accounting method used to value an investment, based on the cost to acquire the asset, without recognizing post-purchase market changes.

Dividends

Payments made by a corporation to its shareholder members, usually derived from profits.