Why should I choose AnalystNotes?
Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.
Basic Question 0 of 11
Consider two portfolios.
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.
B. greater, greater.
C. lower, lower.
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.
User Contributed Comments 1
| User | Comment |
|---|---|
| Rotigga | Didn't have to do the math-- just look at the weights first |
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh
Learning Outcome Statements
define key rate duration and describe its use to measure price sensitivity of fixed-income instruments to benchmark yield curve changes
CFA® 2025 Level I Curriculum, Volume 4, Module 13.