$11$

Multiple Choice

$4$ points

Suppose that the initial value of an unlevered portfolio is $$200$ million, all of which is invested in Treasury bilis with a modifed duration of $7.$ If the manager increases the slae of the portfolio by borrowing $$800$ million continuing to irvest in the same Treasury bills, what is the duration of the levered portfolio?

$20$

$30$

$35$

$25$