Duration Measures the Average Life of a Financial Asset

question 96

True/False

Duration measures the average life of a financial asset.

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Definitions:

Incarceration

The state of being imprisoned or confined in a jail or prison as a form of punishment following a conviction for a crime.

Legal Advice

Counsel given by a lawyer or legal expert regarding the legal consequences of a situation or proposed course of action.

Time

A continuous dimension that is used to sequence events, to compare the duration of events or the intervals between them, and to quantify rates of change of quantities in material reality or in the conscious experience.

Cost

The value, usually in monetary terms, required to produce, acquire, or maintain a product or service.