What is the new value of your portfolio

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You manage the assets of a $50 Billion insurance company. Your portfolio has a duration of 5. Interest rates drop 1%. What is the new value of your portfolio? . Following up , your manager comes in while you are sipping champagne celebrating the gain obtained. “This is a disaster! We are ruined!” cries your manager. Why could the manager be so upset even though the portfolio generated a gain?

Reference no: EM131978250

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