Which one of the following is the measure of interest rate risk for fixed-income securities?

Question

Quizplus · Accepted Answer

Macaulay duration is the measure of interest rate risk for fixed-income securities. It measures the weighted average time until the cash flows from a bond are received, taking into account both the timing and size of each payment and the bond's yield. Standard deviation and variance are measures of volatility, Jensen's alpha is a measure of excess return, and beta is a measure of market risk.

Which One of the Following Is the Measure of Interest