9-49 Convexity is a desirable effect to a portfolio manager because it is easy to measure and price.

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Quizplus · Accepted Answer

Convexity is a desirable effect to a portfolio manager mainly because it can help manage risk by providing protection against changes in interest rates. While it can be measured and estimated, it may not always be easy to price accurately due to various factors that can impact the value of the convexity.

9-49 Convexity Is a Desirable Effect to a Portfolio Manager