Which of the following statements regarding duration is INCORRECT?
a. Yield to Maturity is inversely related to duration, holding coupon and maturity
constant.
b. Coupon is inversely related to duration, holding maturity and YTM constant.
c. For all coupon-paying bonds, duration equals time to maturity.
d. Duration expands with time to maturity at a decreasing rate, holding coupon and
YTM constant.
It is possible under the new Morningstar ratings that one class of shares of a mutual
fund can have a different rating that another class of shares of the same mutual fund.
Conventional wisdom has long held that diversification of a stock portfolio should be
across industries. Does the correlation coefficient indirectly recommend the same
thing?