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:

Investing Activities

Part of cash flow from investing, representing transactions related to the acquisition or disposal of long-term assets and investments other than inventory.

Increase or Decrease in Cash

A measure that reflects the change in cash and cash equivalents held by a company over a period of time.

Income Statement

A financial statement that shows a company's revenues and expenses, resulting in a net profit or loss over a specific period.

Retained Earnings

The portion of a company's profits that is not distributed as dividends to shareholders but is kept for reinvestment in the business or to pay debt.