Which of the Following Statements Is False

question 13

Multiple Choice

Which of the following statements is false?

• A) As interest rates change, the market values of the securities and cash flows in the portfolio change as well, which in turn alters the weights used when computing the duration as the value-weighted average maturity.
• B) The duration of a portfolio of investments is the simple average of the durations of each investment in the portfolio.
• C) Adjusting a portfolio to make its duration neutral is sometimes referred to as immunizing the portfolio, a term that indicates it is being protected against interest rate changes.
• D) When the durations of a firm's assets and liabilities are significantly different, the firm has a duration mismatch.

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Percentile

Any value in a series dividing the distribution of its members into 100 groups of equal frequency.

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A preventive health service typically for children and adolescents, aimed at early detection and treatment of health conditions.

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The act of speaking or making sounds that seem nonsensical or have no apparent meaning.