Duration Is a Direct Measure of the Interest Rate Sensitivity

question 71

Multiple Choice

Duration is a direct measure of the interest rate sensitivity of an asset or liability, which means that:

• A)the smaller the duration, the more sensitive the price of that asset or liability
• B)the larger the duration, the less sensitive the price of that asset or liability
• C)the larger the duration, the more sensitive the price of that asset or liability
• D)None of the listed options are correct.

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Definitions:

Behavioral Cardiology

A field of study focusing on the psychological aspects of cardiovascular health and the impact of behavior on heart disease.

CVD Risk

Refers to the likelihood of having cardiovascular disease, which includes conditions affecting the heart and blood vessels.

Psychosocial Risk Factors

Elements in a person's social and psychological environment that can increase their likelihood of developing a psychological disorder.

Hypertension

A chronic medical condition where the blood pressure in the arteries is persistently elevated, also known as high blood pressure.