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If a Financial Institution Has 50% of Its Portfolio in a Bond

Question 58

Multiple Choice

If a financial institution has 50% of its portfolio in a bond with a five-year duration and 50% of its portfolio in a bond with a seven-year duration,what is the duration of the portfolio?


A) 12 years
B) 7 years
C) 6 years
D) 5 years

Correct Answer:

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