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True or False and why. ? 3. In general, the shorter the bonds remaining maturity, the...

True or False and why. ?
3. In general, the shorter the bonds remaining maturity, the smaller the price sensitivity of a bond to a change in interest rates.
4. A stocks market risk, which is measured by its beta, can be lowered by adding more stocks to the portfolio in which the stock is held.
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(3) The sensitivity of a bond's price to interest rate changes, which in simpler words is known as the bond's duration, is directly related to the bond's remaining maturity. This is so because of interest rates being more volatile in the long run as compared to the short run, thereby making longer maturity bonds more sensitive to interest rate changes (longer the maturity higher the bond's duration or interest rate sensitivity). Therefore, the given statement is true.

(4) Market Risk of a particular stock, as measured by its beta, reflects the stock's non-diversifiable business risk combined with its unique financial leverage risk. The stock-specific business and financial leverage risk remain unaltered if more stocks are added to a portfolio, as the same is non-diversifiable in nature. Hence, the given statement is false.

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