Convexity is:
A) a measure that determines how secure an investor should feel about a 'perfectly hedged' portfolio.
B) a technique for locking in the value of a portfolio at the end of a planning horizon.
C) a measure of the rate of change of price with respect to yield or the percentage change in price for a parallel shift in yields.
D) the sensitivity of the hedge portfolio's yield to maturity to movements in the yield to maturity of the portfolio one is trying to hedge.
Correct Answer:
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