The 'Additive Property' of Duration Says That the Average Duration

question 14

True/False

The 'additive property' of duration says that the average duration of a group of securities is equal to the duration of all the cash flows generated by these securities.

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Definitions:

Economic Status

Refers to the social standing or class of an individual or group often measured by income, wealth, employment, and education.

Social Status

The position or rank of a person or group within the society, often determined by wealth, occupation, education, or family heritage.

Eating Disorder

A mental disorder characterized by abnormal eating habits which negatively affect a person's physical or mental health.

Anorexia Nervosa

An eating disorder characterized by an intense fear of gaining weight and a distorted body image leading to extreme weight loss.