Duration Is Defined As

question 32

Multiple Choice

Duration is defined as:

• A)the weighted-average time to maturity of a series of cash flows, using the relative present values of the cash flows as weights
• B)the weighted-average present values of a series of cash flows using the timing of the cash flows as weights
• C)the standard deviation of the time to maturity of a series of cash flows
• D)an asset's or a liability's time to maturity

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Definitions:

Foreign Investment

Investment in domestic companies and assets of another country by a foreign investor, aiming to gain returns.