Which of the Following Statements Is FALSE

question 25

Multiple Choice

Which of the following statements is FALSE?

• A)When the durations of a firm's assets and liabilities are significantly different, the firm has a duration mismatch.
• B)Adjusting a portfolio to make its duration neutral is sometimes referred to as 'immunising the portfolio', a term that indicates it is being protected against interest rate changes.
• C)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.
• D)The duration of a portfolio of investments is the simple average of the durations of each investment in the portfolio.

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Information Technology

The use of computers and software to manage information, including data processing, storage, and transmission.

Software Code

The written commands and instructions that tell a computer how to perform specific tasks and operations.

Client Control

The extent to which clients can influence, manage, or direct the services or products they are receiving.

Product

An item or service developed, manufactured, or provided to fulfill the needs or desires of consumers.