Macaulay duration Study guides, Revision notes & Summaries

Portfolio Management Exam General Study Notes Last document update:   ago

QUESTION 1: Determine two benefits and two drawbacks of exchange traded funds versus mutual funds. QUESTION 2: Explain the function of convexity in bond portfolio and how modified duration and convexity are used to approximate the bond’s percentage change in price, given a large change in interest rates QUESTION 3: The Capital Asset Pricing Model contends that there is a systematic and unsystematic risk for an individual security. Which is the relevant risk variable and why is it relevant? W...