Which of the Following Is Not a Weakness of Duration

question 25

Multiple Choice

Which of the following is not a weakness of duration gap analysis?

• A)It is difficult to accurately compute duration.
• B)Each future cash flow must be discounted by the appropriate future interest rate.
• C)The duration of a portfolio must be constantly monitored.
• D)It is difficult to estimate the duration on zero coupon bonds.
• E)All of the above are weaknesses of duration gap analysis.

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