Which of the Following Is NOT a Weakness of Duration

question 38

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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Definitions:

Bronchial Arteries

Arteries that provide oxygenated blood to the bronchi and connective tissue of the lungs.

Abdominal Aorta

The largest artery in the abdominal cavity, supplying blood to most of the abdominal organs.

Pneumothorax

A medical condition where air enters the space between the lung and chest wall, causing the lung to collapse.

Respiratory Distress Syndrome

A serious condition that affects the lungs, characterized by insufficient surfactant leading to lung collapse, common in premature infants.