### CFA Practice Question

There are 266 practice questions for this study session.

### CFA Practice Question

Which of the following portfolios would lose the least from a parallel shift up of 10 basis points in the yield curve?

Correct Answer: D

Portfolio D which has the smallest effective duration would lose the least with an upward parallel yield curve shift of 10 basis points.

### User Contributed Comments5

User Comment
rhardin I know I should know this, but how do I calculate effective duration again?
bodduna V- - V+/2vo*decimal yield
bodduna Or Add all portfolio key rate durations of each maturity in the portfolio
ashish100 Portfolio d duration = 30.7 (lowest) that's what I got at least
davidt87 ashish i don't know how you got that. my understanding are that these are key rate durations for different points in the yield curve that must all add back to the asset's/portfolio's effective duration.

so Portfolio D duration = 3 + 1 + 1 = 5
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