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Understanding Duration in Behavioral Finance and Its Impact

Duration in Behavioral Finance serves as a crucial concept, intertwining cognitive biases with investment strategies. Understanding duration is essential for investors aiming to optimize portfolio performance while navigating the complexities of market psychology. In the realm of behavioral finance, duration…

Exploring the Role of Duration in Risk Assessment Models

Duration plays a crucial role in risk assessment models, serving as a key indicator of a financial instrument’s sensitivity to interest rate changes. Understanding this concept can significantly enhance decision-making processes within asset management strategies. Duration matching, a technique that…