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Consider the following statements: I. The duration is a measure for bond interest rate risk II. The CAPM cannot be used to estimate expected returns

Consider the following statements:

I. The duration is a measure for bond interest rate risk

II. The CAPM cannot be used to estimate expected returns for bonds

a.

Both statements are correct

b.

Only statement I is correct

c.

Only statement II is correct

d.

Both statements are false

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