alleryStart learning →A pool has Rs 200 lakh maturing in 120 months and Rs 600 lakh maturing in 240 months. What is its WAM?
A210 months
B180 months
C150 months
D200 months
Answer & Solution
Correct answer: A. 210 months
WAM = 0.25 x 120 + 0.75 x 240 = 30 + 180 = 210 months, weighting maturities by balances.
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