The Duration of a Portfolio of Assets Can Be Found

question 88

True/False

The duration of a portfolio of assets can be found by calculating the book value weighted average of the durations of the individual assets.

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Definitions:

Debit Balance

An account balance where the total debits exceed the total credits, often indicating the amount that a company or individual owes.

Credit Balance

A situation where the total credits in an account exceed the total debits, common in liability and revenue accounts.

Income Tax Instalment

Payments made to tax authorities in installments rather than a lump sum, typically for estimated taxes.

Age

The length of time that a person or entity has been alive or in existence.