CFA Practice Question

There are 147 practice questions for this study session.

CFA Practice Question

Consider two portfolios.

D: duration.
D(1) = key rate duration for the 1-year part of the curve. D(2), D(3), D(4) ...

The interest rate risk of portfolio 1 is ______ that of portfolio 2.
A. greater than
B. the same as
C. lower than
Explanation: The two portfolios have equal interest rate risk, because the modified duration of both portfolios is 11.5.

User Contributed Comments 1

User Comment
bruno5104 Effective Duration, right..
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