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Packer has a fixed income portfolio that consists of Bond A, Bond B, and Bond C. The bonds have durations of 4, 6 and 10,
Packer has a fixed income portfolio that consists of Bond A, Bond B, and Bond C. The bonds have durations of 4, 6 and 10, respectively. If Packer has 50% invested in Bond A and 25% invested in each of the other two bonds, what is the duration for the portfolio? Assume that the correlation between the bonds is 0.5. A. 5,5 B. 6.0 C. 6.7 D. 7.2
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