Financial institutions hold a portfolio comprising the following securities: 10 million bond with duration 4 years 20
Question:
Financial institutions hold a portfolio comprising the following securities:
10 million bond with duration 4 years
20 million securities with duration 6 years
40 million bonds with duration 5 years
What is the duration of the total portfolio?
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To find the duration of the total portfolio you can use a weighted average formula ...View the full answer
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Related Book For
Financial Markets And Institutions
ISBN: 9781292215006
9th Global Edition
Authors: Stanley Eakins Frederic Mishkin
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