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In the context of a bond portfolio, price risk and reinvestment rate risk exactly cancel out at a time horizon equal to _____

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Answer: duration of the portfolio

Step-by-step explanation:

An investment time horizon which is also referred to as the investment horizon is total time that an investor is expected to hold a particular security.

In the context of a bond portfolio, price risk and reinvestment rate risk exactly cancel out at a time horizon equal to duration of the portfolio.

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