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    Financial Institutions Management Study Set 2
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    Exam 6: Interest Rate Risk Measurement: the Duration Model
  5. Question
    The Modified Duration Is Defined As
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The Modified Duration Is Defined As

Question 41

Question 41

Multiple Choice

The modified duration is defined as:


A) duration multiplied by (1 + R)
B) duration divided by (1 + R)
C) duration minus (1 + R)
D) duration plus (1 + R)

Correct Answer:

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