Duration Is Important in Bond Portfolio Management BecauseI) It Can

Duration is important in bond portfolio management becauseI) it can be used in immunization strategies.II) it provides a gauge of the effective average maturity of the portfolio.III) it is related to the interest rate sensitivity of the portfolio.IV) it is a good predictor of interest-rate changes.

A) I and II
B) I and III
C) III and IV
D) I, II, and III
E) I, II, III, and IV

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