Duration Is Considered a Good Measure of Risk for a Bond

question 12

True/False

Duration is considered a good measure of risk for a bond portfolio because it indicates the relative volatility of the bond or portfolio due to interest rate changes and also the rating of the bonds.

---

Definitions:

Clan Groups

Social groups characterized by common descent from a shared ancestor, often forming the basic units in tribal societies.

Mythical Origin

Pertains to a legendary or fictional account explaining the beginning or creation of something, often involving gods or supernatural events.

Kindreds

A network of relatives within which individuals possess rights and obligations; often extending beyond immediate family.

Focal Person

An individual who is the center of attention or the main subject of study in a particular research or discussion.