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:

Reasonably Foreseeable

Refers to events or outcomes that can be predicted or expected by a person with regular intelligence and foresight.

Injured Party

A person or entity that has suffered harm or damage due to the actions or negligence of another, and may be entitled to compensation or remedy under the law.

State Tort Law

The body of law at the state level in the United States that governs civil wrongs and damages, outside of contractual obligations, allowing victims to seek compensation.

Federal Statute

A law enacted by the national government of a country.