Choose the One Alternative That Best Completes the Statement or Answers

question 27

Multiple Choice

Choose the one alternative that best completes the statement or answers the question.
Approximate the area under the curve and above the x-axis using n rectangles. Let the height of each rectangle be given
by the value of the function at the right side of the rectangle.
- $$f ( x ) = 3 x ^ { 2 } - 2 \text { from } x = 1 \text { to } x = 5 ; n = 4$$

• A) 140
• B) 154
• C) 144
• D) 150

---

Definitions:

Immunization Strategies

Financial strategies used to shield a bond portfolio from the effects of interest rate fluctuations by balancing the duration of assets and liabilities.

Interest Rate Sensitivity

The degree to which the value of an investment, particularly fixed-income securities, changes in response to variations in interest rates.

Duration

A measure of the sensitivity of the price of a bond or a bond portfolio to changes in interest rates, usually expressed in years.

Interest-Rate Risk

The risk that an investment's value will change due to a change in the absolute level of interest rates, which can affect both debt and equity instruments.