Duration Is Important in Bond Portfolio Management Because I) It

Multiple Choice

Duration is important in bond portfolio management because I) it can be used in immunization strategies.
II) it provides a gauge of the effective average maturity of the portfolio.
III) it is related to the interest rate sensitivity of the portfolio.
IV) it is a good predictor of interest-rate changes.

A) I and II
B) I and III
C) III and IV
D) I, II, and III