As the Investment Horizon Approaches, the Duration of an Unrebalanced

question 6

True/False

As the investment horizon approaches, the duration of an unrebalanced portfolio that originally was immunized will be less than the time remaining to the investment horizon.

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Definitions:

Misinformation Effect

The occurrence where an individual’s recollection of specific events deteriorates in accuracy due to information received after the event.

Self-relevant Memories

Memories that are personally significant and have emotional importance, playing a key role in identity and self-concept.

Primacy Effect

The tendency to remember information at the beginning of a list better than information that comes later.

Bottom-up Approach

A strategy or method that begins with specific details or elements and builds up to a more general, comprehensive system or understanding.