CFA考試
報考指南考試報名準考證打印成績查詢備考資料考試題庫

重置密碼成功

請謹慎保管和記憶你的密碼,以免泄露和丟失

注冊成功

請謹慎保管和記憶你的密碼,以免泄露和丟失

How to understand Portfolio Duration?

幫考網(wǎng)校2020-10-12 15:26:07
|
Portfolio duration is a measure of the sensitivity of a portfolio's value to changes in interest rates. It is calculated as the weighted average of the durations of the individual securities in the portfolio, where the weights are the percentage of the portfolio invested in each security.

Duration measures the time it takes for the portfolio to receive the present value of its expected cash flows. A higher duration means that the portfolio is more sensitive to changes in interest rates, while a lower duration means that the portfolio is less sensitive to interest rate changes.

For example, if a portfolio has a duration of 5 years, it means that a 1% increase in interest rates would lead to a 5% decrease in the value of the portfolio. On the other hand, if the duration is 2 years, a 1% increase in interest rates would lead to a 2% decrease in the value of the portfolio.

Understanding portfolio duration is important for investors who want to manage their interest rate risk. By adjusting the duration of their portfolio, investors can reduce their exposure to interest rate fluctuations and potentially improve their overall returns.
幫考網(wǎng)校
|

推薦視頻

推薦文章

铜川市| 宁陵县| 甘谷县| 张掖市| 柏乡县| 岳普湖县| 大埔县| 金华市| 东乡| 竹溪县| 健康| 白城市| 泸水县| 九台市| 临潭县| 左云县| 大名县| 永修县| 襄城县| 齐河县| 桂阳县| 松原市| 博白县| 紫阳县| 华宁县| 武冈市| 万全县| 阿克陶县| 岳池县| 九龙坡区| 紫金县| 咸丰县| 霍州市| 黄石市| 台中市| 古田县| 昌都县| 昌邑市| 鸡西市| 金平| 济源市|