-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:

Generalizability

describes the extent to which research findings and conclusions from a study conducted on a sample population can be applied to the population at large.

Scientific Method

A systematic process for conducting research and experimentation, involving observation, hypothesis formulation, experimentation, and conclusion.

Social Validity

The degree to which the goals, procedures, and outcomes of an intervention are acceptable and relevant to the participants and their community.

Non-disturbed Samples

Samples collected from natural or unchanged settings or populations, maintaining their original conditions without human-induced alteration or manipulation.