Duration Is Defined As

question 36

Multiple Choice

Duration is defined as:

• A)A measure of the extent to which different investments expose an investor to interest rate risk
• B)A measure of the weighted-average time required before all principal and interest is received on an investment
• C)A measure that takes into account both the size of cash flows and the timing of their receipt
• D)All of the above

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Definitions:

Total Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue; it is calculated by dividing sales revenue by total assets.

Return on Total Assets

A ratio indicating the efficiency of a company in generating profits from its total assets.

Return on Total Assets

This is a profitability ratio that measures how effectively a company is using its assets to generate profit.

Semiannual Interest

The interest that is calculated and paid twice a year on an investment or loan.