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4. The following graph illustrates a powerful principle when managing interest rate risk of bond portfolios. Identify and explain this principle concisely in the space

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4. The following graph illustrates a powerful principle when managing interest rate risk of bond portfolios. Identify and explain this principle concisely in the space provided. Standard Deviation of Holding Period Returns Net Price Risk Net Reinvestment Rate Risk Holding Period ANSWER: Modified Duration Maturity 4. The following graph illustrates a powerful principle when managing interest rate risk of bond portfolios. Identify and explain this principle concisely in the space provided. Standard Deviation of Holding Period Returns Net Price Risk Net Reinvestment Rate Risk Holding Period ANSWER: Modified Duration Maturity

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