Effective duration of sum of money paid continuously

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Reference no: EM131954762

1. Calculate the effective duration of a sum of money paid continuously for one year, where the rate payment per unit time is equal to $1. Assume the effective annual rate of interest is 0.4%.

2. Both large and small investors should stick with low-cost funds. Do you agree with this statement? And is ‘smart beta’ a possible alternative to the passive versus active dichotomy.

Reference no: EM131954762

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