1. The duration of the portfolio is the weighted avernge of the duration of each asset in the portfolio, weighted by the price of each asset. A 1 and 2 only B I and 3 only 2. Using the modificd duration to estimate the change in price for an asset always ubderestimates the price. 2 and 3 only 3. The convexity of a fixed cach flow asset is always negative. D 1,2 and 3 E The correct answer is not given by (A),(B)