- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 28. The Term Structure and Interest Rate Dynamics
- Subject 5. Yield Curve Factor Models
CFA Practice Question
Which of the following portfolios would benefit the most from a parallel shift down of 10 basis points in the yield curve?
A. Portfolio A
B. Portfolio B
C. Portfolio C or D
Explanation: Portfolio A which has the largest effective duration would benefit the most with a downward parallel yield curve shift of 10 basis points.
User Contributed Comments 0
You need to log in first to add your comment.