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Why is convexity important. fes immization of a portfolio? The duration formula does not work well for convex assets such as bank accoounts. The duration

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Why is convexity important. fes immization of a portfolio? The duration formula does not work well for convex assets such as bank accoounts. The duration formula only predicts portfolio values well for small interest rate changes. The duration formula does not work will for convex assets such as bonds. The duration formula predicts portfolio value Wery Wellforverylargeinterestratechanges

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