What is the estimated change in price resulting from a decrease in the yield
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What is the estimated change in price resulting from a decrease in the yield

Question 1:

A bond has a duration of 8.6 years and is trading at a yield of 4.6%. What is the estimated change in price resulting from a decrease in the yield of 1 basis point?

Question 2

You construct a portfolio containing 3 stocks, X, Y and Z. The following table shows the amount you invest in each stock and the beta of each stock. What is the beta of the portfolio?


Hint
Management In business, bonds refer to the instruments of gratitude of the bond insurers to the holders. They can be formed in five types, treasury bonds, foreign bonds, investment-grade corporate bonds, and mortgage-backed bonds. They are good investments as they give interest from time to time....

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