All other things being equal, portfolios with longer duration (effective maturity) will be more sensitive to changes in market interest rates (interest rate risk) than portfolios with a shorter duration. True False Question 13 5 pts Which of the following is NOT a potential benefit of the bond laddering strategy: Staggering maturity dates prevents long duration commitments to one bond Bond ladders maximize interest rate risk through sequential maturity selection Bond ladders allow investors to adjust cash flows to match their financial situation and need for liquidity An investor can minimize the impact of fluctuations in market interest rates because bonds mature on a regular basis that can be reinvested at current rates Question 14 5 pts and consumer durable expenditures are If interest rates increase, business investment expenditures are likely to likely to increase, increase increase; decrease decrease; increase decrease; decrease