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In: Finance

Changes to the slope of the yield curve : a. Highlight the need for risk measures...

Changes to the slope of the yield curve :

a. Highlight the need for risk measures such as duration

b. Realigning the portfolio's duration

c. Have little effect on the value of a well diversified portfolio of bonds

d. Impact the value of floating rate securities more than the value of fixed coupon securities

Solutions

Expert Solution

Option A is correct

Highlight the need for risk measures such as duration

With effective duration of Portfolio, change in yield curve has low effect on portfolio

jeff jeffy answered 2 years ago
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