Duration Is Defined As

question 32

Multiple Choice

Duration is defined as:

• A)the weighted-average time to maturity of a series of cash flows, using the relative present values of the cash flows as weights
• B)the weighted-average present values of a series of cash flows using the timing of the cash flows as weights
• C)the standard deviation of the time to maturity of a series of cash flows
• D)an asset's or a liability's time to maturity

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Definitions:

Biologically Determined

Refers to traits, behaviors, or conditions that are influenced by genetic makeup rather than the environment.

Instinct

An innate, typically fixed pattern of behavior in animals in response to certain stimuli that is primarily genetically coded.

Homeostasis

The self-regulating process by which biological systems tend to maintain stability while adjusting to conditions that are optimal for survival.

Steady State

A condition in which all aspects of a system are in equilibrium or unchanging over time, often used in physics and economics to describe stable systems.