Question
Choose the true statement: a. Duration may not be used to determined the risk of a price change of the financial instrument due to the
Choose the true statement:
a.
Duration may not be used to determined the risk of a price change of the financial instrument due to the changes of interest rates
b.
Without information about the convexity the risk of a price change of the financial instrument due to the changes of interest rates may not be evaluated.
c.
The higher the duration of the instrument, the lower the risk of a price change of this instrument due to the changes of interest rates
d.
The higher the duration of the instrument, the greater the risk of a price change of this instrument due to the changes of interest rates
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
