Security A: a risky stock with an expected return of 10%, a payout ratio of 60%, a constant Return on Equity (ROE) of 15%, and an expected dividend one year from now of $1 per share. Security B: a two-year default-free bond with a face value of 51000, a coupon rate of 4% and a yield to maturity of 4% Security C: a risky stock whose current dividend (just paid, so the current pnce is ex-dividend) is $1 and whose dividend is expected to grow once by 60% this year and then remain constant at that level forever, also with an expected return of 10%. Assume any cash flows are paid annually with the first cash flow due one year from today. (b) Consider the following statement: "The duration approximation will understate the fall in the Security B's price if its yield rises". Explain whether this statement is correct or incorrect.