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Problem Bonus 0.5. Prove the formula for the duration of a portfolio: Consider n fixed-income securities with prices Pi and Macaulay durations Di, respectively, all

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Problem Bonus 0.5. Prove the formula for the duration of a portfolio: Consider n fixed-income securities with prices Pi and Macaulay durations Di, respectively, all computed at a common yield. The portfolio of these securities has price P=i=1nPi and duration D=i=1nwiDi where wi=PP is the weight of security

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