-Calculate the Duration of the Assets to Four Decimal Places

question 93

Multiple Choice

$$\begin{array} { | l | r | c | c | } \hline \text { Assets } & \text { Amount } & \text { Rate } & \text { Duration } \\\hline \text { Cash } & \$ 75 \text { million } & & \\\hline \text { Loans } & \$ 750 \text { million } & 12 \text { percent } & 1.75 \text { years } \\\hline \text { Treasuries } & \$ 175 \text { million } & 9 \text { percent } & 7.00 \text { years } \\\hline \text { Liabilities and Equity } & & & \\\hline \text { Time Deposits } & \$ 350 \text { million } & 7 \text { percent } & 1.75 \text { years } \\\hline \text { CDs } & \$ 575 \text { million } & 8 \text { percent } & 2.50 \text { years } \\\hline \text { Equity } & \$ 75 \text { million } & & \\\hline\end{array}$$
-Calculate the duration of the assets to four decimal places.

• A)2.5375 years.
• B)4.3750 years.
• C)1.7500 years.
• D)3.0888 years.
• E)2.5000 years.

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Definitions:

Quality Audit

A systematic examination of a quality system carried out by an internal or external quality auditor or audit team.

Scope Document

A document that outlines the project goals, deliverables, tasks, costs, and deadlines.

Project Appraisal

The evaluation process of analyzing and assessing the viability, reliability, and potential success of a project before any significant resources are committed.

Standard Deviation

A measure in statistics that indicates the dispersion or variability of a set of numerical data relative to its mean.