If a Financial Institution Has 50 Percent of Its Portfolio

question 55

Multiple Choice

If a financial institution has 50 percent of its portfolio in a bond with a five-year duration and 50 percent 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

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Definitions:

Moral Development

The process of learning to distinguish right from wrong and developing the ability to act according to ethical principles.

Principle-Centred

An approach or philosophy that emphasizes the importance of adhering to a set of core values or principles to guide decision-making and actions.

Government Laws

Statutes and regulations established by the legislative bodies of governments to dictate behavior, enforce order, and provide a basis for justice.

Ethical Behaviour

Conduct that is in accordance with accepted principles of right and wrong governing the professional and personal actions of individuals.