As it captures the sensitivity the price of a financial asset with respect to the fluctuations of the cost of capital, duration can be thought of as a measure of risk, albeit a conditional one. Coherent risk measures should satisfy four conditions, listed on page

As it captures the sensitivity the price of a financial asset with respect to the fluctuations of the cost of capital, duration can be thought of as a measure of risk, albeit a conditional one. Coherent risk measures should satisfy four conditions, listed on page

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter9: The Financial Markets And The Economy: The Tail That Wags The Dog

Section: Chapter Questions

Problem 5TY

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