If a Financial Institution Has 50% of Its Portfolio in a Bond

question 58

Multiple Choice

If a financial institution has 50% of its portfolio in a bond with a five-year duration and 50% of its portfolio in a bond with a seven-year duration,what is the duration of the portfolio?

• A)12 years
• B)7 years
• C)6 years
• D)5 years

---

Definitions:

Diverged

Refers to the process where two or more entities become different or develop in different directions, often used in evolutionary biology to describe species.

Interbreed

The mating and reproduction between individuals of different breeds, varieties, species, or genera.

Gametic Isolation

A prezygotic reproductive barrier where the gametes (egg and sperm) of different species fail to unite or recognize each other, preventing fertilization.

Hybrid Sterility

A condition where offspring from the crossbreeding of two different species are unable to reproduce.