Which of the Following Statements Is FALSE

question 27

Multiple Choice

Which of the following statements is FALSE?

• A)As interest rates change,the market values of the securities and cash flows in the portfolio change as well,which in turn alters the weights used when computing the duration as the value-weighted average maturity.
• B)The duration of a portfolio of investments is the simple average of the durations of each investment in the portfolio.
• C)Adjusting a portfolio to make its duration neutral is sometimes referred to as immunizing the portfolio,a term that indicates it is being protected against interest rate changes.
• D)When the durations of a firm's assets and liabilities are significantly different,the firm has a duration mismatch.

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Definitions:

Olowe of Ise

A celebrated Yoruba artist from Nigeria, renowned for his innovative and dynamic sculptures, particularly in wood.

Woodcarved Reliefs

Artistic techniques where designs are carved into a flat wooden surface, leaving the images raised up from the background, typically used for decorative purposes.

Stylistic Element

A distinctive feature or aspect of an artwork or design that contributes to its style or character.

Emblem of Kingship

A symbol or object associated with a king or monarchy, representing authority, sovereignty, and the state's power.