CFA Practice Question

There are 266 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)...
Portfolio 1 has a ______ sensitivity to changes in 10-year rates and a ______ sensitivity to shifts in 5-year and 30-year rates than Portfolio 2.

A. greater, lower.
B. greater, greater.
C. lower, lower.
Correct Answer: A

User Contributed Comments 1

User Comment
Rotigga Didn't have to do the math-- just look at the weights first
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