The goal of immunization is to A. make the effective duration of the portfolio zero В. generate a return in excess of the benchmark using factor mismatches C. earn a pre-determined return, over a specified time horizon, irrespective of interest rate changes D. provide funding of a future liability from coupon and matured principal flows
The goal of immunization is to A. make the effective duration of the portfolio zero В. generate a return in excess of the benchmark using factor mismatches C. earn a pre-determined return, over a specified time horizon, irrespective of interest rate changes D. provide funding of a future liability from coupon and matured principal flows
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![The goal of immunization is to
A.
make the effective duration of the portfolio
zero
В.
generate a return in excess of the
benchmark using factor mismatches
C.
earn a pre-determined return, over a
specified time horizon, irrespective of
interest rate changes
D.
provide funding of a future liability from
coupon and matured principal flows](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F59cd95f4-2dde-45e4-b89f-632cf3a080d3%2F21559a20-69e3-48be-9da3-405f82964d05%2F563zcsl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The goal of immunization is to
A.
make the effective duration of the portfolio
zero
В.
generate a return in excess of the
benchmark using factor mismatches
C.
earn a pre-determined return, over a
specified time horizon, irrespective of
interest rate changes
D.
provide funding of a future liability from
coupon and matured principal flows
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