Which of the following statements is FALSE? O A. When the durations of a firm's...
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Finance
Which of the following statements is FALSE? O A. When the durations of a firm's assets and liabilities are significantly different, the firm has a duration mismatch. O B. The duration of a portfolio of investments is the simple average of the durations of oach investment in the portfolio O C. Adjusting a portfolio to make its duration neutral is sometimes referred to as immunizing the portfolio, a term that indicates it is being protected against interest rate changes As interest rates change the market values o the securities and cashflows in the portfo o change as whichin um aters the weights used when computing the duration as t e value weighted average maturity
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