An Investor Holds a Bond with a Duration of 7

question 20

Multiple Choice

An investor holds a bond with a duration of 7.2 years. The only available security with which to hedge has a duration of 1.8 years. Given comparable par values, how many of the hedge security will be shorted to properly create a hedge?

• A) 1
• B) 2
• C) 3
• D) 4

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The power or right to give orders, make decisions, and enforce obedience, often associated with a position of leadership or governance.

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The transformation from societies primarily based on agriculture and crafts to those characterized by the mass production of goods and services using advanced technologies and factories.

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